Economy, asked by sneha5910, 6 months ago

relationship beetween price and demand​

Answers

Answered by samikshajadhav16
2

Explanation:

The law of demand is an economic principle that explains the negative correlation between the price of a good or service and its demand. If all other factors remain the same, when the price of a good or service increases, the quantity of demand decreases, and vice versa.

The relationship between price and demand is negative i.e., they are inversely related. By inversely related we mean that as the price of the goods increase the demand of that commodity decreases and vice versa. This because of the law of diminishing marginal utility. According to this law, the utility/satisfaction of the consumer goes on decreasing with every additional consumption of the commodity and hence, the consumer will buy more goods only when the price decreases. Other reasons are income effect, substitution effect, different uses of commodity etc.

Answered by manishagond27
2

the relationship between demand and price....

the law of demand is generally relationship price and consumption. when the price of good rises the quality demanded will fail the quality of the good demand period of time will as price rises and will rises will price fail other things being equal there are two reason for this law ........

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