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Discuss the law of demand with the help of suitable example |
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Answer» The law of DEMAND states that, "conditional on all else being equal, as the price of a GOOD INCREASES , quantity demanded decreases , conversely, as the price of a good decreases ,quantity demanded increases ". In other WORDS, the law of demand DESCRIBES an inverse relationship between price and quantity demanded of a good. When the price of an apple goes from $0.95 to $0.75, the quantity demanded will go up. Many people who weren't willing to buy apples at $0.95 are now willing to purchase them at $0.75. |
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