Law of demand and its exceptions

1. Law of Demand : Its Exceptions

2. Definition: Law of Demand In economics, the law states that, all else being equal, as the price of a product increases, quantity demanded falls; likewise, as the price of a product decreases, quantity demanded increases. In other words, the  law of demand  states that the quantity demanded and the price of a commodity are oppositely related, other things remaining constant. If the income of the consumer, prices of the related goods, and preferences of the consumer remain unchanged, then the change in quantity of good demanded by the consumer will be negatively correlated to the change in the price of the good. Mathematically, the inverse relationship may be expressed as a causal relation:

3. Law of Demand Graph: It is downward sloping indicating that between the price of a product and the quantity demanded a negative or inverse relationship exists A  demand curve  is a graphical depiction that abides by the law of demand. It shows how the quantity demanded of some product during a specified period of time will change as the price of that product changes, holding all other determinants of the quantity demanded constant. Price is measured on the vertical axis and quantity demanded on the horizontal axis.

4. Eg .: Law of Demand Price Rs . Goods Demanded by individual in a day X in units Y in units Z in units 100 95 90 85 80 10 20 30 40 50 20 15 12 10 5 10 10 10 10 10 Construct Demand Graph for X, Y, Z

5. Different types of Demand Curves Law of Demand Curve Exceptional Law of Demand Curve Increase in Demand Curve Decrease in Demand Curve Extension in Demand Curve Contraction in Demand Curve

6. Assumptions & Exceptions : Law of Demand

7. Thank You & Any Doubts Law of Demand : Its Exceptions