What is law of demand ? Explain the expectations to the law of demand?
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Other factor remaining constant (Ceteris Paribus) the demand of a commodity is inversely related to the price of commodity.
Exceptions of law of demand are :-
a) Giffen goods
b) Conspicuous goods
Exceptions of law of demand are :-
a) Giffen goods
b) Conspicuous goods
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LAW OF DEMAND
The law of demand state that other things being equal quantity demanded increases with a decrease in own price of the commodity and vice versa. In other words, there is an inverse relationship between quantity demanded of a commodity and its own price, other things remaining constant. The term 'other things being equal' emplies that all other determinants of demand, other than own price of the commodity remain constant.
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