Question

State the law of demand. Why is the demand curve downward sloping? Explain the factors affecting demand.

Answer 1

Explanation:

law of demand:

states the inverse relationship between price and quantity demanded,keeping other factors constant.

*when there is a fall in price it leads to an increase in quality demanded resulting in downward slope.

*factors affecting demand:

1.income and price level of the consumers.

2.size of the family.

3.taste and preference of the consumers.

4.substitute goods.