what is Law of demand ? Assumption of law of demand / Explain
Law of demand -
When other factors remaim the same the quantity demanded of a commodity increases with the fall in price and decreases with the rise in price. The assumptons of law of demand are-
- Income of the consumer remains the same.
- Price of the related goods are constant.
- There is no change in Consumer's tastes and preferences.
- There is no change in the no. of family members in the house hold and weather.
law of demand states that their is an inverse relationship between the quantity of the commodity and the price paid to accquire it.
price of goods remains constant.
income of consumer remains unchanged.
taste and preferences remains same.
all units are homogeneous
commodity shaould be normal good.