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Describe the law of demand

Updated: 8/22/2023
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9y ago

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A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa.

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Flossie Kozey

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2y ago
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15y ago

I do not know the exact law but i can explain the details of it.

The price of an article or commodity depends on its demand. Higher the demand higher the price.

for example: When Agricultural production in a year is low, there would be heavy demand for Rice and Wheat. So people would be ready to pay a premium over its normal price to make sure that they get the quantity they want. This would automatically cause an upward movement in the price of wheat.

This upward movement in price is caused by the high demand.

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Wiki User

11y ago

Introduction:

Quantity demanded for a good or service depends upon many factors like price of the commodity or service itself, price of other related goods and services, consumer's income, consumer's taste etc.

Statement:

According to Ferguson,

"Other things remaining the same, the quantity demanded varies inversely with price"

Comprehensively ,it can be stated that:

"Other things being equal, the quantity demanded contracts when price increses and the quantity demanded extends when price decreases"

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9y ago

The law of demand states that when all other factors are held constant, when the price of a product increases, the demand will. Demand will directly influence the level of supply.

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8y ago

It state that when the price of product is less than the consumer are willing to buy more.

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12y ago

As the price of a good decreases, the amount that consumers are willing to purchase increases.

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11y ago

the inverse relationship between price and demand

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