PRESENTATION

ON
LAW OF DEMAND-

1.JYOTI PRAKASH CHAMPATIRAY
2.SAMER KUMAR SAHOO
3.MADHULI MISHRA
4.SRADHANJALI SAHOO
5.JYOTI PRASAD HARICHANDAN


LAW OF DEMAND:-



LAW OF DEMAND-
Statement-
Ceteris paribus ,the higher the price of commodity ,the
smaller is the quantity demand and lower the price,
larger the quantity demanded.


The law of demand expresses the nature of functional
relationship between 2 variables of the demand function
such as the price of the commodity and quantity demanded
of the commodity.
Dx=f(Px) , ceterisparibus
where Dx=quantity demanded of
x number of comodity
Px=price of x number of comodity

DEMAND CURVE
Demand schedule
ASSUMPTION OF LAW OF DEMAND:-


1. Rationality.
2.Income of the consumer remains constant.
3.Tests and preferences of the consumer do not
change.
4. Price of the related commodities (substitutes &
complements)
5. People do not expect the change in price and
income in near future.
WHY DEMAND CURVE SLOPES DOWNWARD?
1-income effect
2-number of consumer
3-Substituion effect
4-Price effect
5-Law of diminishing Marginal utility



Thank you