[shalini mittal]

Law of Demand


Other things being same, there is an inverse relationship between price and quantity demanded. Here other things means determinants of demand except price. 

 Assumptions of the Law of Demand

Law of demand holds good when “other things remain the same”.  The main assumptions of the law are as follows :

(1)         Tastes and preferences of the consumers remain constant.

(2)         There is no change in the income of the consumer

(3)         Prices of the related goods do not change.

(4)         Consumers do not expect any change in the price of the commodity in the near future.