Finance
What is Law of Demand?
Published by Gbaf News
Posted on June 27, 2018
6 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Gbaf News
Posted on June 27, 2018
6 min readLast updated: January 21, 2026
Law of demand means that the increase in the price of the product decreases its demand in the market. People will purchase the product more when they see that the price is getting down. This schedule of demand helps in knowing what quantity a customer is going to purchase and at what price. Generally, the demanded number of a commodity is contrary to its price.
Conjecture below which law of demand is well grounded
The law of demand will appropriate solely when the facts mentioned below are satisfied.
● If there is no alteration in the income of an individual user.
● The size of the population remains the same.
● The price of interconnected commodities does not change.
● No compromise in the customs, fashion, preference and taste of the customer.
● There should be no assumptions concerning the future alteration in the price.
You can simply understand the law of demand by two methods one is by the demand curve and other with the help of the demand schedule here we will be discussing how to understand law of demand with the help of the demand scheduler.
Demand Schedule is basically a way to represent the price and the quantity demanded in a form of table. You can represent the quantity of the product and the different combination of the price that is demanded by the customer within the specific period of time. As the price of the product decreases the consumption increases. Therefore, we can say that there is always a negative relationship between the price and quantity demanded for a commodity.
Shortcoming/Inconsistency of law of demand
There are various irregularities and the fallibility of the law of demand discussed below:
The assumption of price is against the law of demand, when people assume that the price of the product is going to fall in the coming days then they do not buy the product and wait for the price to fall so that they can afford large quantity in lesser amount. On the contrary if they assume the price to be higher in the future they buy the commodity in the price they are getting now.
Law of demand means that the increase in the price of the product decreases its demand in the market. People will purchase the product more when they see that the price is getting down. This schedule of demand helps in knowing what quantity a customer is going to purchase and at what price. Generally, the demanded number of a commodity is contrary to its price.
Conjecture below which law of demand is well grounded
The law of demand will appropriate solely when the facts mentioned below are satisfied.
● If there is no alteration in the income of an individual user.
● The size of the population remains the same.
● The price of interconnected commodities does not change.
● No compromise in the customs, fashion, preference and taste of the customer.
● There should be no assumptions concerning the future alteration in the price.
You can simply understand the law of demand by two methods one is by the demand curve and other with the help of the demand schedule here we will be discussing how to understand law of demand with the help of the demand scheduler.
Demand Schedule is basically a way to represent the price and the quantity demanded in a form of table. You can represent the quantity of the product and the different combination of the price that is demanded by the customer within the specific period of time. As the price of the product decreases the consumption increases. Therefore, we can say that there is always a negative relationship between the price and quantity demanded for a commodity.
Shortcoming/Inconsistency of law of demand
There are various irregularities and the fallibility of the law of demand discussed below:
The assumption of price is against the law of demand, when people assume that the price of the product is going to fall in the coming days then they do not buy the product and wait for the price to fall so that they can afford large quantity in lesser amount. On the contrary if they assume the price to be higher in the future they buy the commodity in the price they are getting now.
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