Law of demand

Law of demand

Demand of any goods and services always show a preference or choice among the options available in the market. A consumer always buys that combination where his satisfaction is higher.

combination of good & services

                                                                                                 In other words, we can say that demand always show a “strong order from consumer side”. We know that when there is “increase in the income, we increase our buying behaviour. Sorely demand decrease of there is a price hike of that particular goods and services”.

Law of Demand

  Assumption for law of demand –

ü  There is no change in the consumer interest

ü  Combination of goods and services always show a consumer preference

ü  Consumer have a strong order for that combination

ü  Consumer choose one combination where other thing remain same

ü  Always prefer to buy more thing then few

ü  Consumer behaviour is given and consistent

ü  Always show a preference in different combination where ‘good x’ is preferred then ‘goods y’ and ‘goods y’ is preferred then ‘goods z’ then naturally ‘good x’ is preferred ‘then z’

ü  Always show a positive correlation between income and goods if income increase then a consumer increase its buy behaviour