Demand
- Demand is desire.
- Demand is economics means both the willingness as well as the ability to purchase a commodity.
Law of demand
- The law of demand states that the quantity demanded of a good or service decreases as it price increases and conversely, the quantity demand increases when the price decreases
Assumptions
- Income of people remain unchanged
- Taste, preference and habits of consumer unchanged.
- Prices of related goods i.e. substitute and complementary goods remain unchanged.
- There is no expectation of future change in price of commodity— The commodity in question is not consumed for its prestige value.