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The law of demand in ______ states that when prices fall demand is likely to increase. - Commerce

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प्रश्न

The law of demand in ______ states that when prices fall demand is likely to increase.

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उत्तर

The law of demand in economics states that when prices fall demand is likely to increase.

Explanation:

Holding other factors constant (ceteris paribus), a lower price makes a good cheaper relative to income and substitutes, so consumers buy a larger quantity, the combined income and substitution effects drive the increase in quantity demanded.

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अध्याय 6: Principles of Management - QUESTIONS [पृष्ठ १७१]

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सी. बी. गुप्ता Commerce Volume 2 [English] Class 12 ISC
अध्याय 6 Principles of Management
QUESTIONS | Q 31. | पृष्ठ १७१
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