Short Answer 
The law of demand indicates an inverse relationship between price and quantity demanded, where lower prices increase demand. The demand curve visually confirms this relationship, showing that as prices decrease, the quantity demanded correspondingly rises.
Step 1: Understand the Law of Demand
The law of demand states that there is an inverse relationship between the price of a good and the quantity that consumers are willing to purchase. This means that when prices fall, demand increases, while higher prices lead to lower demand. A basic understanding of this principle is crucial for analyzing consumer behavior.
Step 2: Analyze the Demand Curve
The demand curve is typically downward sloping, illustrating the negative relationship between price and quantity demanded. When observing this curve on a graph, you’ll notice:
- As prices decrease along the y-axis, the quantity demanded increases along the x-axis.
- This slope confirms that lower prices generally lead to higher demand.
Step 3: Confirm the Relationship with Graph Data
Upon examining the graph, you can see that as prices drop, the data shows a corresponding rise in quantity demanded. This visual confirmation reinforces the concept of the law of demand, highlighting that:
- Lower prices result in higher quantities demanded.
- The relationship depicted clearly supports the inverse relationship defined by the law of demand.