Question : Which of the following are the assumptions of the law of Demand?
Option 1: Price remains unchanged
Option 2: Income remains unchanged
Option 3: The price of related goods is changed
Option 4: A change in taste and preferences
Correct Answer: Income remains unchanged
Solution : Following are the assumptions of the law of demand: 1:Prices of the related goods do not change. 2:Incomes of the consumers do not change. 3:The tastes and preferences of the consumers remain constant. Hence option b is correct.
Question : The law of demand states that when _____.
Question : In which of the following cases does the law of demand fail?
Question : If a consumer's demand for a good moves in the same direction as the consumer's income, the consumer's demand for that good must be inversely related to the price of the good, which is called _____.
Question : Law of Demand defines the relationship between price and quantity of commodities for typical goods as follows:
Question : Marshall established the law of Equimarginal Utility:
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