Answer to Question #247751 in Economics of Enterprise for Sadam Dine

Question

. state the laws of demand and discuss with the cases in which this law is to be violated.

Answer 1

Solution:

The law of demand states that other factors being constant, the price and quantity demanded for any product or service are inversely related. That is, when the price of a product or service is low, consumers will tend to demand more of that product or service and vice versa. This is normally due to the law of diminishing marginal utility. Consumers will always seek to satisfy their most urgent wants first.