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.

  • 6

law of demand states that their is an inverse relationship between the quantity of the commodity and the price paid to accquire it.

assumptions-

price of goods remains constant.

income of consumer remains unchanged.

taste and preferences remains same.

all units are homogeneous

commodity shaould be normal good.

;)

  • 3
What are you looking for?