LAW OF DEMAND
In economics, the law states that, all else being equal, as the price of a product increases, quantity demanded falls; likewise, as the price of a product decreases, quantity demanded increases.
In other words, the law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant. If the income of the consumer, prices of the related goods, and preferences of the consumer remain unchanged, then the change in quantity of good demanded by the consumer will be negatively correlated to the change in the price of the good.There are, however, some possible exceptions to this rule which are below.
- Change in taste or demand.
- Change in income
- Change in other prices.
- Discovery of substitution.
- Anticipatory change in prices.
- Rare or distinction goods.
- THANKS FOR READING THIS ARTICLE
- PLEASE LEAVE YOUR COMMENTS
No comments:
Post a Comment