Law of Demand:
Law of Demand states that quality purchased varies inversely
with price. In other words, the higher the price, the lower the quantity
demanded. The reason for this phenomenon is that consumer’s opportunity cost
increases so they must give something else up or switch to the substitute product.
Example:
Few months ago
when the price of potato increased. We started to use less amount of potato and
purchase less amount and is the most usable item in kitchen but we started to
use less amount of potato. The quantity demanded has decreased.
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