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There is an inverse relationship between quantity demanded and its price. The people know that when price of a commodity goes up its demand comes down. When there is decrease in price the demand for a commodity goes up. There is inverse relation between price and demand . The law refers to the direction in which quantity demanded changes due to change in price. Assumptions of the law There is no change in income of consumers. There is no change in the price of product. There is no change in quality of product. There is no substitute of the commodity. The prices of related commodities remain the same. There is no change in customs. There is no change in taste and preference of consumers. The size of population remains the same. The climate and weather conditions are same. The tax rates and other fiscal measures remain the same.
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Describe one fundamental assumption of demand theory and how this assumption might be incorrect?
The greater the demand; the higher the price. This doesn't apply to free goods, like air.
What are the determinants of money demand in an economy?
discuss the determinant of money demand
What is derivation of law of demand?
Law of demand is the higher the price the lower of goods demand for
Define law of demand?
the law of demand state there is a negative or inverse relation ship
Define law of demand and its assumption?
The law of demand states that, all else being equal, as the price of a good or service decreases, the quantity demanded by consumers increases, and vice versa. This inverse relationship is primarily driven by the substitution effect (consumers opting for cheaper alternatives) and the income effect (increased purchasing power as prices fall). Key assumptions of the law of demand include that consumers are rational, preferences remain constant, and there are no changes in factors like income or prices of related goods. Additionally, it assumes that the good in question is not a Giffen good, where higher prices may lead to an increase in demand.
How does the law of demand apply to buying goods at a retail store and at a wholesale store?
Discuss the law of demand and apply to buying goods at a retail store and at a wholesale store.
Describe one fundamental assumption of demand theory and how this assumption might be incorrect?
The greater the demand; the higher the price. This doesn't apply to free goods, like air.
What is demand and law of demand?
The law of demand is that when you demand something you MUST say please and thank you, it's the law.
What are the determinants of money demand in an economy?
discuss the determinant of money demand
Discuss the factors that are likely to influence the demand for desktop computers in Ghana?
Discuss the factors that are likely to influence the demand for desktop computers in GHANA?
What is derivation of law of demand?
Law of demand is the higher the price the lower of goods demand for
Law of demand and supply?
Consumers is the law of supply and demand.
Why does the law of demand hold?
why does the4 law of demand holds
What is a technical principal?
A basic truth, law, or assumption
Example of law of demand?
marketing is a great example of law of demand
What law is based on the assumption that acts injure not just individuals but society as a whole?
criminal law
Define law of demand?
the law of demand state there is a negative or inverse relation ship
