Question

In the following Question, read the statements and choose the correct alternative among those given below:

Statement 1: Law of Demand makes a qualitative statement and not quantitative.

Statement 2: No proportional relationship between change in price and the resultant change in demand is established by Law of Demand.

Options

• Both the Statements are true.

• Both the Statements are false.

• Statement 1 is true and Statement 2 is false.

• Statement 2 is true and Statement 1 is false.

Answer 1

Both the Statements are true.

Explanation:

The Law of Demand indicates the direction of change in quantity demanded, but not its magnitude, and it establishes no proportional relationship between price change and demand change.