Question

State the law of demand

Answer 1

Explanation:

In microeconomics, the law of demand is a fundamental principle which states that, "conditional on all else being equal, as the price of a good increases, quantity demanded will decrease; conversely, as the price of a good decreases, quantity demanded will increase".

Answer 2

Answer:

Q_{x}=f\left(P_{x} ; \mathbf{Y}\right)

Q_{x} = quantity demanded of good x

f = demand function

P_{x} = price of the good

{Y} = list of other parameters held constant

Explanation:

In microeconomics, the law of demand is a fundamental principle which states that, "conditional on all else being equal, as the price of a good increases (↑), quantity demanded will decrease (↓); conversely, as the price of a good decreases (↓), quantity demanded will increase (↑)".[1] The only factor which influences the quantity demanded is the price. The law of demand is the inverse relationship between demand and price. [2] It also “works with the law of supply to explain how market economies allocate resources and determine the prices of goods and services that we observe in everyday transactions” [3] The law of demand describes an inverse relationship between price and quantity demanded of a good. Alternatively, other things being constant, quantity demanded of a commodity is inversely related to the price of the commodity. For example, a consumer may demand 2 kgs of apples at $70 per kg; he may, however, demand 1 kg if the price rises to $80 per kg. This has been the general human behaviour on relationship between the price of the commodity and the quantity demanded. The factors held constant refer to other determinants of demand, such as the prices of other goods and the consumer's income.[4] There are, however, some possible exceptions to the law of demand, such as Giffen goods and Veblen goods.