state the demand law and explain it with the help of table and diagram
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Law of demand
There is an inverse relationship between quantity demanded and its price. The people know that when price of a commodity goes up its demand comes down. When there is decrease in price the demand for a commodity goes up. There is inverse relation between price and demand . The law refers to the direction in which quantity demanded changes due to change in price.
A consumer may demand one dozen oranges at $5 per dozen . He may demand two dozens when the price is $4 per dozen. A person generally buys more at a lower price. He buys less at higher price. It is not the case with one person but all people liken to buy more due to fall in price and vice versa. This is true for all commodities and under all conditions. The economists call it as law of demand. In simple words the law of demand states that other things being equal more will be demanded at lower price and lower will be demanded at higher price.
Definition
Alfred Marshal says that the amount demanded increase with a fall in price, diminishes with a rise in price.C.E. Ferguson says that according to law of demand, the quantity demanded varies inversely with price.Paul A. Samuelson says that law of demand states that people will buy more at a lower prices and buy less at higher prices, other things remaining the same.
Assumptions of the law
There is no change in income of consumers.There is no change in the price of product.There is no change in quality of product.There is no substitute of the commodity.The prices of related commodities remain the same.There is no change in customs.There is no change in taste and preference of consumers.The size of population remains the same.The climate and weather conditions are same.The tax rates and other fiscal measures remain the same.
Explanation of the law
The relationship between price of a commodity and its demand depends upon many factors. The most important factor is nature of commodity. The demand schedule shows response of quantity demanded to change in price of that commodity. This is the table that shows prices per unit of commodity ands amount demanded per period of time. The demand of one person is called individual demand. The demand of many persons is known as market demand. The experts are concerned with market demand schedule. The market demand schedule means 'quantities of given commodity which all consumers want to buy at all possible prices at a given moment of time'. The demand schedules of all individuals can be added up to find out market demand schedule.
Demand schedule
Price in dollars.Demand in Kg.5100420033002400
The table shows the demand of all the consumers in a market. When the price decreases there is increase in demand for goods and vice versa. When price is $5 demand is 100 kilograms. When the price is $4 demand is 200 kilograms. Thus the table shows the total amount demanded by all consumers various price levels.
Diagram

There is an inverse relationship between quantity demanded and its price. The people know that when price of a commodity goes up its demand comes down. When there is decrease in price the demand for a commodity goes up. There is inverse relation between price and demand . The law refers to the direction in which quantity demanded changes due to change in price.
A consumer may demand one dozen oranges at $5 per dozen . He may demand two dozens when the price is $4 per dozen. A person generally buys more at a lower price. He buys less at higher price. It is not the case with one person but all people liken to buy more due to fall in price and vice versa. This is true for all commodities and under all conditions. The economists call it as law of demand. In simple words the law of demand states that other things being equal more will be demanded at lower price and lower will be demanded at higher price.
Definition
Alfred Marshal says that the amount demanded increase with a fall in price, diminishes with a rise in price.C.E. Ferguson says that according to law of demand, the quantity demanded varies inversely with price.Paul A. Samuelson says that law of demand states that people will buy more at a lower prices and buy less at higher prices, other things remaining the same.
Assumptions of the law
There is no change in income of consumers.There is no change in the price of product.There is no change in quality of product.There is no substitute of the commodity.The prices of related commodities remain the same.There is no change in customs.There is no change in taste and preference of consumers.The size of population remains the same.The climate and weather conditions are same.The tax rates and other fiscal measures remain the same.
Explanation of the law
The relationship between price of a commodity and its demand depends upon many factors. The most important factor is nature of commodity. The demand schedule shows response of quantity demanded to change in price of that commodity. This is the table that shows prices per unit of commodity ands amount demanded per period of time. The demand of one person is called individual demand. The demand of many persons is known as market demand. The experts are concerned with market demand schedule. The market demand schedule means 'quantities of given commodity which all consumers want to buy at all possible prices at a given moment of time'. The demand schedules of all individuals can be added up to find out market demand schedule.
Demand schedule
Price in dollars.Demand in Kg.5100420033002400
The table shows the demand of all the consumers in a market. When the price decreases there is increase in demand for goods and vice versa. When price is $5 demand is 100 kilograms. When the price is $4 demand is 200 kilograms. Thus the table shows the total amount demanded by all consumers various price levels.
Diagram

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