Question

Explain the law of demand with its assumptions.

Answer 1

THE LAW OF DEMAND SHOWS THE INVERSE  RELATIONSHIP BETWEEN OWN PRICE AND QUANTITY DEMANDED KEEPING OTHER FACTOR CONSTANT.

ASSUMPTIONS

1 PRICE OF RELATED GOOD CONSTANT

2 TASTE AND PREFERENCES OF CONSUMER

3 NO CHANGE IN INCOME OF BUYER

4  CONSUMER DO NOT EXPECT ANY CHANGES IN NEAR FUTURE