Demand theory is an economic principle relating to the relationship between consumer demand for goods and services and their prices in the market. ... As more of a good or service is available, demand drops and so does the equilibrium price.
Demand theory describes the way that changes in the quantity of a good or service demanded by consumers affects its price in the market, The theory states that the higher the price of a product is, all else equal, the less of it will be demanded, inferring a downward sloping demand curve.
The first f is the price of the french bread, the 2f is the price of the whole grain(twice that of the french) and f+$2.50 is the cost of the cinnamon raisin ($2.50 more than the french)
