LAW OF DEMAND

by • 18/06/2011 • B.COM PART 1 EconomicsComments (1)1191

The law of demand states that; “ If other things remain constant, when the price of good increases, its demand decreases and when the price of good decreases its demand increases.”

In short, there is an inverse or negative relationship between price and the quantity demanded.”

Table Showing Law Of Demand

Price Per Kg (Wheat) Quantity Demanded
1 40
2 30
3 20
4

10

Explanation:

From the above schedule and graph, it is clear that, there is an inverse relationship between price and quantity demanded because whenever prices of wheat are increased, demand of wheat is going to decrease.

As we have seen in above graph when price was “1” the demand of wheat was “4- kg” and when price reached at “4” than its demand was “10kg”, so demand is going to be decreased when price increases.

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One Response to LAW OF DEMAND

  1. Hamid says:

    Sir
    When price is one then quantity demanded is 50 this is ok then you write explanation you say that when price is one u say that quantity demanded is 4.
    what is this?

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