2.1.6. Law of Demand

2.1.6. Law of demand

The law of demand reveals the relationship between the price of a commodity and the quantity demanded of it in a market. The law of demand states that other things being equal, the quantity demanded of good increases with a fall in price and vice versa. Thus, quantity demanded varies inversely with price.

Last modified: Monday, 26 December 2011, 10:05 AM