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Asked Sep 13, 2019
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Explain Law of Demand. (500 words)

 

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Expert Answer

Step 1

Demand:

Demand refers to the consumer’s willingness to buy goods and services and he is ready to pay prevailing market price for the use of certain goods and services.

Step 2

The law of demand refers to the inverse relationship between price and quantity demanded (other factors remain constant). Alternatively, when the price of the goods and services rises then demand falls. While a fall in the price of a commodity leads to a rise in demand. The following phenomenon depends on the purchasing power of the consumer. When the price of the commodity rises then t...

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