Law of demand states that other factors being constant, price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.
For example,a consumer may demand 2 kgs of salt at Rs 50 per kg; he may however demand 1kg, if the price rises to 60 per kg.
This is general human behaviour on relationship between the price of the commodity and quantity demanded.The factors held constant refers to other determinants of demand.
Saturday, July 21, 2018
Law of demand
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