Question

State the law of demand and illustrate it diagrammatically.

Answer 1

The law of demand states that, other things remaining equal, the quantity demanded of a commodity increases when its price falls and decreases when its price rises. Demand Schedule and Demand Curve showing inverse relation between Price and Quantity Demanded.

Price per unit (Rs.)	Quantity Demanded
10	50
8	60
6	70
4	80
2	90