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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
Why law of demand and supply is not true if other determinant are not true if other determinants are not constant?
The law of demand and supply operates under the assumption that all other determinants, such as consumer preferences, income levels, and production costs, remain constant. When these factors change, they can significantly influence demand and supply, leading to shifts in the curves that do not align with the predicted behavior of quantity demanded or supplied at a given price. For instance, an increase in consumer income can raise demand for a product, while changes in production technology can alter supply, thus invalidating the straightforward relationship suggested by the law. Therefore, the law of demand and supply is only reliable when all other variables are held constant.
Define law of demand?
the law of demand state there is a negative or inverse relation ship
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
Why law of demand and supply is not true if other determinant are not true if other determinants are not constant?
The law of demand and supply operates under the assumption that all other determinants, such as consumer preferences, income levels, and production costs, remain constant. When these factors change, they can significantly influence demand and supply, leading to shifts in the curves that do not align with the predicted behavior of quantity demanded or supplied at a given price. For instance, an increase in consumer income can raise demand for a product, while changes in production technology can alter supply, thus invalidating the straightforward relationship suggested by the law. Therefore, the law of demand and supply is only reliable when all other variables are held constant.
