Question

Define law of demand and law of supply ?

Answer 1

Heya...

See here for your answer :-

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Law of demand :-

• Law of demand States that, other things remaining constant then there is an inverse relationship between the own price and the quantity demanded of the commodity...

• At the low price high good is demanded and vice versa..

Law of supply :-

• Law of supply States that, other things remaining constant then there is a positive relationship between own price and the quantity supplied of a commodity...

• At high price producer will sell high amount of goods and vice versa..

Thank you

Answer 2

Heya user✨✨

▶️Law of demand states that there is a inverse relationship between quantity demand of a commodity and it own price,other things remaining constant .

ASSUMPTION ⬇️⬇️

➡️Taste and Preference of the consumer remain constant .

➡️There is no change in income of the buyers.

➡️Prices if the related good do not change .

➡️ Consumer do do not expect any significant change in the availability of the commodity in the near future .

▶️Law of Supply states other things remaining constant , Quantity supplied increase with increase in own price of a commodity and quantity supplied decrease in decrease of own price of a commodity.

ASSUMPTION ⬇️⬇️

➡️There is no change in the price of the factor of production .

➡️There is no change in the technique of production .

➡️There is no change in the goal of the firm .

➡️ There is no change in the price of related goods .

➡️The Government policy relating to Price and production of the commodity does not change .

✨Hope this helps you ✨