Law of Demand: The law of demand states that as the price of a good or service increases, the quantity demanded decreases, assuming all other factors remain constant.
Elasticity of Demand: Elasticity of demand measures how responsive quantity demanded is to changes in price. If demand is elastic, it means that even small price changes lead to significant shifts in quantity demanded.
Substitute Goods: Substitute goods are products that can be used as alternatives for each other. When the price of one substitute good increases, consumers tend to switch their purchases towards cheaper substitutes.