Demand:
The quantity which buyers are
willing and able to purchase of a product at the prevailing market price.
Law of Demand:
As the price of a product falls,
ceteris paribus, the demand for the product extends and conversely…
As the price of a product rises,
ceteris paribus, the demand for the good contracts.
Note: Ceteris paribus is a Latin expression which means “other things
remaining equal”
Demand Curve:
In the above diagram when price is Rs. 10 the quantity demanded is 20. If price falls to Rs. 5 the quantity demanded extends to 50.
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