Law of demand
Demand is the willingness of a
consumer to buy a commodity. Demand is indirectly proportional to the price of
a commodity except of some necessary commodities like sugar rice salt. If price
increases demand decreases and vice versa. Let us take an example of a car
swift. The increase in price of swift decreases its demand and consumer shift
for a similar alternative like Volkswagen polo.
Another example can be increase of
price in tea can shift a consumer towards coffee.
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