Why more goods are purchased when price falls?
Dear Student
According to the law of demand there is an inverse relationship between price and quantity demanded of a good ; ceteris paribus ( other things remaining equal ) . When price falls other things such as quality , preference etc remaining equal the consumer can afford more goods at the same given budget or income . So he buys more .
Regards .
According to the law of demand there is an inverse relationship between price and quantity demanded of a good ; ceteris paribus ( other things remaining equal ) . When price falls other things such as quality , preference etc remaining equal the consumer can afford more goods at the same given budget or income . So he buys more .
Regards .