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theory of demand

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theory of demand
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Yogita Ingle 4 years, 3 months ago

Law of demand is interpreted as quantity demand of product comes down if the price of the product goes up.’ That is if the cost of the product goes up then the aggregate quantity demanded falls. Because the opportunity cost of customer increase which leads customers to go for any other substitute or they may not purchase it. The law of demand and its exceptions are really inquisitive concepts.

Consumer proclivity theory assists us to comprehend which combination of 2 commodities a customer will purchase based on the market prices of the commodities and subject to a customer’s budget restriction. The amount of a commodity a customer actually purchases is the interesting part. This is best elucidated in Microeconomics utilizing the demand function.

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