Differentiate between law of demand and price elasticity of demand.

1.	Differentiate between law of demand and price elasticity of demand.
Answer» <html><body><p></p>Solution :(i) <a href="https://interviewquestions.tuteehub.com/tag/law-184" style="font-weight:bold;" target="_blank" title="Click to know more about LAW">LAW</a> of demand states the inverse relation between price of a commodity and its <a href="https://interviewquestions.tuteehub.com/tag/quantity-1174212" style="font-weight:bold;" target="_blank" title="Click to know more about QUANTITY">QUANTITY</a> demanded,assuming no change in other factors. Onthe other hand , price elasticity of demand <a href="https://interviewquestions.tuteehub.com/tag/indicates-1041501" style="font-weight:bold;" target="_blank" title="Click to know more about INDICATES">INDICATES</a> the <a href="https://interviewquestions.tuteehub.com/tag/rate-1177476" style="font-weight:bold;" target="_blank" title="Click to know more about RATE">RATE</a> of change in quantity demanded of the commodity due ot change in its price.<br/> (ii)Law of Demand reflects the direction of change in demand , whereas, price elasticity of demand measures the magnitude of change in demand.</body></html>

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