--%>
Assignment Help - homework help

State the assumptions of Law of Demand

State the assumptions of Law of Demand?

E

Expert

Verified

Law of demand is based upon certain fundamental assumptions. They are given as below:

1) There is no change in the consumers’ preference and taste
2) Income must remain constant.
3) Prices of other goods must not change.
4) There must be no substitute for the commodity.
5) The commodity must not confer any type of distinction.
6) The demand for the commodity must be continuous.
7) People must not expect any change within the price of the commodity.

   Related Questions in Managerial Economics

  • Q : Explain the follow-up pricing Explain

    Explain the follow-up pricing.

    		•
  • Q : Derived Demand for Labor All else

    All else identical, a competitive firm will demand more labor when: (w) technological advances lead to automation. (x) the price of the firm’s output rises. (y) more firms enter the industry. (z) competing firms offer their workers more training

    		•
  • Q : Value of the Marginal Product The value

    The value of marginal product of a variable resource is marginal physical product of it multiplied with: (w) the marginal revenue from the sale of its addition to output. (x) its cost. (y) the price of the product. (z) one.

  • Q : Explain the aspects of operational or

    Explain the aspects of operational or internal issues.

    		•
  • Q : Illustrates the fixed and variable

    Illustrates the fixed and variable inputs in economics?

    		•
  • Q : Define the pricing of a new product

    Define the pricing of a new product.

    		•
  • Q : Determine the demand when Demand and

    Suppose that the auto market started at the intersection of D0S0, and in that case automakers opened foreign assembly plants after discovering which competent foreign employees worked for minor wages. How would it influence the auto market?: (

    		•
  • Q : Labor Supply Curves to Competitive Firms

    A price taker within the labor market: (w) can set the wage that this will pay for the labor this hires. (x) can set the wage at which this will supply the use of its labor. (y) doesn’t care what wage this pays or receives. (z) can’t influ

    		•
  • Q : Persuade competitors by cartel member

    When a cartel member can persuade competitors to keep the cartel price but secretly give a discount price to certain customers, profits will rise: (w) for all members of the cartel. (x) since price cuts are only given to assigned customers. (y) as a result of an incre

    		•
  • Q : Explain the way of Price Elasticity of

    Explain the way of Price Elasticity of Demand.

    		•