443,412 views
21 votes
21 votes
State the law of demand and explain its assumptions​

User Teron
by
3.3k points

2 Answers

22 votes
22 votes

Answer:

Law of demand explains consumer choice behavior when the price changes.

The law of demand is a fundamental principle of economics that states that at a higher price consumers will demand a lower quantity of a good.

It means while studying the relationship between the price of a commodity and demand for it, the effect of other determinants of demand on it is assumed to be constant

Step-by-step explanation:

Assumptions:

-The income of the consumer or the buyer does not change

- Price of the goods remain constant

-Tastes, preferences and the fashion of the buyers does not change.

User Dfperry
by
3.2k points
21 votes
21 votes

Answer:

The law of demand states that quantity purchased varies inversely with price.

Step-by-step explanation:

The law of demand states that quantity purchased varies inversely with price.

User Faph
by
3.0k points