Question

Law of demand ? Assumptions of law of demand ?​

Answer 1

Law of Demand

The law of demand states that an inverse relationship exists between demand for a commodity and own price of commodity.

Demand refers to the amount of goods a consumer is willing and able to buy in a given period of time.

Assumptions of Law of Demand

The Law of Demand assumes that all other factors affecting demand, other than own price of commodity, remain constant.

This means, the assumptions of law of demand are:

1. Price of Substitute and Complimentary goods remains constant
2. Income of consumer remains constant
3. Taste and Preferences of consumers remains same
4. No expectation of change in price of commodity in near future
5. The number of consumers in the maket doesn't change.

Graphical Presentation

The schedule and graphical presentation are given in the attachment, ceated by me in Excel.

Answer 2

Answer:

ʜᴇʀᴇ ɪs ʏᴏᴜʀ ᴀɴsᴡᴇʀ

Law of demand

In our day to day life, we observe that when the price of the commodity is high, a lower quantity of it is purchased and when the price is low, the quantity purchased is more. This phenomenon of inverse relationship between price and the quantity of the demand is called law of demand.

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Statement of the law :-

The law of demand states that, other things remaining equal, the quantity demanded of a commodity increases when it's price falls and decreases when the price rises.

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Assumptions of law of demand :-

1. There should be no change in the income of the consumer.
2. There should be no change in taste and preference of the consumer.
3. Prices of related goods should remain unchanged.
4. Size of population should not change.
5. There is no change in the expectations of the consumer.
6. There is no change in the consumer-credit facilities.
7. The distribution of income remains the same.
8. There is no change in government policies.
9. The commodity is a normal commodity.

Hope it's helpful

Answered by :-

@MissInfinite