Aims and objective of law of demand
Answers
law of demand states the inverse relationship between price and the quantity demanded and keeping other factors constant.
it also helps government set taxes on commodities. Additional could taxes on basic goods could lead to their increase in price hence most people will not afford them. On the other hand taxes will increase the cost of doing business reducing investments into the economy.
In businesses, this law is important when it comes to the pricing of products. Manufacturers and retailers know that the higher they price they products, the lower the quantities that they will sell.
Demand means quantity of commodity that consumer are able and willing to purchase at agiven price at aparticular period of time .
Note that the consumer must be willing and able to buy that commodity .
The law of demand state that " the higher the price the lower the quantity that would be demanded and vice vasal .
The law means if the price of a particular commodity increase by any price the d quantity of that commodity demanded by people will fall , and if the price is fall , the quantity ofthat commodity will rise