Tuesday, January 7, 2020

law of demand and its assumption

Law of demand states that there is inverse realtionship between price and quantity demand,which means when price increases quantity demand decreases and vice versa.



Assumption of law of demand   

1.There is no change in price.
2.Income of the buyer remain constant.
3.Size of consumer remain constant.
4.Taste and prefrence of buyer remain constant.
5.Standard unit of consumption.

Law of diminishing marginal utility

Law of marginal utility Law diminishing marginal utility states that when consumer consume the particular commodity contineously then th...