Question

What are the assumptions of law of demand

Answer 1

Answer:

Assumptions of the law of demand:

1. Price of related good doesn't matter.

2. The 'income of the buyer' remains constant.

3. No means to future expectations for demand.

4. The rate of things is not dependent on quantity.

Explanation:

An important application of the “other things equal" assumption is found in the 'law of demand'. It states that if the price of good drops, the quantity individuals are able and willing to consume will increase, holding other things equal.

Answer 2

Assumption of law of demand:-

• Tarse and preferance of consumer remain constant.

• Their is no change in increase of the consumer.

• Price of related goods doesn't change.

• Consumer don't expect any change in the price of the commodity in near future.