Question

Answer the following question:
Elaborate the law of demand, with the help of a hypothetical schedule.

Answer 1

According to the law of demand, a consumer’s demand shares an inverse relationship with the price of a good and vice-versa, ceteris paribus (other things being constant). In other words, if the income, price of related goods and a consumer’s tastes and preferences remain unchanged, then the demand of a good move opposite to the movement in the price of those goods.
Law of demand can be explained with the help of the following demand schedule. 

Price of Commodity X(Rs)	Quantity Demanded of X(units)
5	100
10	75
15	50
20	25

The schedule shows that as the price of the commodity X increases from Rs 10 to Rs 15, the quantity demanded of X falls from 75 units to 50 units. Thus, there is a negative relationship between demand and price.