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1. tastes n prefernces of the consumer remains the same 2. no change in the income of the consumer 3. prices of d related goods do not change 4. no climatic changes (weather)
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∙ 14y ago
The law of demand assumes that all other factors influencing demand remain constant, such as consumer preferences, prices of related goods, income levels, and expectations. It also assumes that consumers are rational in their decision-making, seeking to maximize their satisfaction or utility. Additionally, the law of demand assumes a downward sloping demand curve, where as price decreases, quantity demanded increases.
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Is demand for rolex watches is an exception to the law of demand?
Yes, the demand for Rolex watches may not follow the traditional law of demand due to factors like exclusivity, brand prestige, and status symbol associated with owning a Rolex. Therefore, the demand for Rolex watches can sometimes increase even if the price goes up, as the product is perceived as a luxury good rather than a necessity.
Which statement best best describes the law of demand best?
The law of demand states that as the price of a good or service decreases, the quantity demanded by consumers increases, and vice versa. In other words, there is an inverse relationship between price and quantity demanded - when the price goes down, people buy more, and when the price goes up, people buy less.
Give two examples of how you have observed the law of demand at work in the real world?
Pricing promotions leading to higher demand: When a product goes on sale or is discounted, consumers tend to buy more of it, demonstrating the law of demand in action. Price increases resulting in decreased sales: If the price of a good or service increases significantly, consumers may choose to purchase less of it, illustrating the inverse relationship between price and quantity demanded as per the law of demand.
What are the Laws of economics?
The laws of economics are principles that govern economic behavior, such as the law of demand and supply, the law of diminishing returns, and the law of comparative advantage. These laws help explain how individuals and businesses make choices in the face of scarcity and how markets function to allocate resources efficiently.
What law does this example help to prove Study Island?
The example provided helps demonstrate the law of supply and demand. By showing how changes in the quantity demanded or supplied of a product can be influenced by factors such as price, the example illustrates the basic principles behind this economic law.
What are the business assumptions?
What is assumotion of law of demand?
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 is derivation of law of demand?
Law of demand is the higher the price the lower of goods demand for
Why does the law of demand hold?
why does the4 law of demand holds
Law of demand and supply?
Consumers is the law of supply and demand.
Example of law of demand?
marketing is a great example of law of demand
Which gas law has the assumptions of a fixed amount and a fixed temperature of a gas?
Charles' Law Boyle's Law (APEX)
Define law of demand?
the law of demand state there is a negative or inverse relation ship
What are the three assumptions of religion?
Diety. Law. Life afetr death.
How is law of demand related to the demand curve?
Law of demand is the reason of the downward sloping of demand curve.Law of demand states the inverse relationship of demand of a commodity and it's price,and demand curve represents this inverse relationship of demand and price.So in this way they both are related.
How is the law of demand related to the demand curve?
Law of demand is the reason of the downward sloping of demand curve.Law of demand states the inverse relationship of demand of a commodity and it's price,and demand curve represents this inverse relationship of demand and price.So in this way they both are related.
What is an exampe of a law of demand?
law f exponent
