Which economic principle states that as the price of a good rises, the demand typically falls?

The principle that states as the price of a good rises, the demand typically falls is known as the Law of Demand. This economic law indicates an inverse relationship between price and quantity demanded; when prices increase, consumers tend to purchase less of that good, and when prices decrease, they tend to buy more.

This relationship is fundamental in understanding consumer behavior and market dynamics. Factors influencing demand, such as preferences, income levels, and the prices of related goods, can interact with this principle, but the core idea remains that price increases generally lead to decreased demand for a specific good.

In contrast, the Law of Supply refers to the relationship between price and the amount of a good that producers are willing to sell; the Equilibrium Principle relates to the point where supply and demand meet; and Price Elasticity measures how responsive the quantity demanded or supplied is to changes in price. Each of these concepts plays a distinct role in economics but does not directly express the relationship stated in the question.