| Home> Class-12> Economics >Q 81 |
|---|
Que : 81. What is the Demand curve and the law of demand ? Write. |
Answer: Demand curve is a graphical represntation of demand schedule. It is the locus of all the points showing varous quantities of a commodity that a consumer is willing to buy at a various level of price, during a given period of time, assuming no change in other factors. It shows the inverse relationship between the quantity demanded of a commodity with its price, keeping other factors constant. Law of demand states the inverse relation between price and quantity demanded keeping other factors constant. Some basic assumptions on which this law is based are as follows- i. prices of substitute goods remain constant. ii. prices of complementary goods remain constant. iii. income of consumer remains same iv. there is future expectations of change in price in future v. tastes and preferences of the consumer remains the same. |
