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# What is meant by law of demand?

hii
what do you mean by law of demand

2. Just Guesss?
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## Re: What is meant by law of demand?

Hello Friend !!

Law of Demand :

I can define Law of Demand as, It is the relationship between the Cost of Product or good and Demand for it in the market.

The law of demand states that, If the Cost of the good is increased then the demand of that good in the market comes down.

On the other side, If the cost of the Good is Less, then many people will buy it (since the cost is less).

This is the general law followed by all the Customers and Consumers.

For e.g consider the below Image :

Observe the Graph in this image ,

If the Price of a Product is rising then the Quantity taken by the customer is decreased accordingly.

This Graph is perfect example to make you know about " Law of Demand " .

Good Luck !!

3. avinashparashar
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## Re: What is meant by law of demand?

Dear Friend

Law of Demand is a microeconomic law which states that "if the prices of good and services increases then the consumer demand for it decreases and vice cersa"

For example if the prices of sugar increases then consumer will buy less sugar.

Mathematically:

Qx=f(Px)

Graphically:

Hope the information helps you.

all the best

avinashparashar

4. ajju23
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## Re: What is meant by law of demand?

Definition of 'Law Of Demand'

A microeconomic law that states that, all other factors being equal, as the price of a good or service increases,

consumer demand for the good or service will decrease and vice versa.

This law summarizes the effect price changes have on consumer behavior.

For example, a consumer will purchase more pizzas if the price of pizza falls.

The opposite is true if the price of pizza increases.

5. Nair.Anudeep
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## Re: What is meant by law of demand?

Hi,

The law of demand is an Economic law. This law states that consumers buy more of a good when its price is lower and the consumers buy less when its price is higher. (Which we are simply following in our life !!!)
The law of demand states, quantity demanded and the price of the commodity are inversely related, if other things remain constand. That is income of the consumer, price of the related goods, and the preferance of the consumer remain unchanged, then the change in the quantity of good demanded by the consumer will be negetivelly correlated to the change in the price of the good.

6. kitkat
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## Re: What is meant by law of demand?

Hiiiiiiiiiiiii

Dear Its a good question in the point of Economics...I think you have heard regarding the MEFA subject in Btech..this subject actually deals with the Deamand,Demand schedule,and law od demand..well let me tell you so much deeply regarding the law of demand...

So dear in Economics Law of demand is a law of economics.actually his law states that price and the demand are inveresly related that is if price increases the demand decreases and the demand increases the price decreases and this is known as la of demand...

Generally any law have the assumptions so the law of demand has certain assumptions which are as follows:

constant habits and tastes that they do not change..
constant money as well as income..
constant price of goods..
no expectation of price changes
Price is independent and demand is dependent.

the mathematical expresion of this law is q=f(p)
where q is the quantity and p is the price of commodity or good...

Law of demand has certain limitations which are as followS:

Change in taste or fashion.
Change in income
Change in other prices.
Discovery of substitution.

Thank you

7. pabolu manikanta
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## Re: What is meant by law of demand?

Hello Friend............

Law of Demand:
Law of Demand is the one of the economic law which mainly states that the consumers buy more product when the price of the commodity is low and buy less goods when the price is higher.That is if the products cost is less then the consumers buy more products and when the price of the commodity increases then the demand decreases and the consumers buys less products....
That is the Change in the Quality of Good is negatively corelated to the change in the price of the good.........
The Relation is expressed mathematically as
Qx=f(Px)
Qx is the quantity demanded
f-is the function of independent variables
Px is the price of the good..........
These are the relation for the Law of Demand is calculated by this factor...........

Every Law has a limitations or the draw backs in the same way the Law of Demand also does not works in some cases as
If the other conditions of demand remains constant then the law of demand does not work well.This Law operated when the Commodity price changes and and all other prices remains constant and conditions do not change.......
some of the assumptions which are done when this law does not operate are...
>>The Habits of the consumers and the taste and fashions remains constant and even if the rates increases also the demand for these commodity remains constant and the demand does not comes down even if the price increases also.
>>If prices of other goods remains constant then the demand for the commodity will be same and does not come down as the prices of other goods are less the demands for these commodity will be same......
These are some of the assumptions which are done for the law of demand..........

REGARDS:

8. mylove
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## Re: What is meant by law of demand?

hello,
In economics, the law of demand is an economic law, which states that consumers buy more of a good when its price is lower and less when its price is higher(ceteris paribus).
The Law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant. That is, if the income of the consumer, prices of the related goods, and preferences of the consumer remain unchanged, then the change in quantity of good demanded by the consumer will be negatively correlated to the change in the price of the good.

9. oh my friend
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## Re: What is meant by law of demand?

Originally Posted by Unregistered
hii
what do you mean by law of demand
Hello Friend............

-This is mainly about the two variants between the consumer and the product

-This is the economic law which mainly explains as the users or the consumers generally willing to buy the product when the cost of the product is low

-consumers buy more product when the price of the commodity is low and buy less goods when the price is higher.

-This is the vice versa process as the buying of the product will be depend on the cost of the product

NOTE:-

** Change in the Quality of product is negatively proportional to to the change in the price of the product **

It is represented as :-

Qx=f(Px)

Qx is the quantity demanded

f-is the function of independent variables

Px is the price of the product

Diagramatically represented as:-

Some important points:-

The Law of demand will be changes with :-

-The Habits of the consumers

-The consumer tastes

-The fashions remains constant

all the best.......!

10. jericho
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## Re: What is meant by law of demand?

HELLO,

The law of demand is an economic law, which states that consumers buy more of a good when its price is lower and less when its price is higher.
The Law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant.

GENERAL EQUATION FOR LAW OF DEMAND -

Qx = f(Px)

Where,
Qx is the quantity demanded of x goods
f is the function of independent variables
Px is the price of x goods.

Examples of Demand -
When the price of gasoline rises by 1% the quantity demanded falls by 0.2%, so gasoline demand is not very price sensitive.
Price elasticity of demand is -0.2 .
When the price of gold jewelry rises by 1% the quantity demanded falls by 2.6%, so jewelry demand is very price sensitive.

best of luck..........