Visitor 1542783988 posted an answer
1 year, 21 days ago
The law of demand states that other factors held constant (ceteris peribus), the higher the price, the lower the quantity and the lower the price, the higher the quantity demanded. In simple terms the law of demand shows an inverse relationship between price and quantity demanded of a given commodity.
Example: Lets assume the price of commodity say X increases, consumers are not willing to purchase more units of that commodity. However if the price reduces then consumers are willing to purchase more of the commodity. The law of supply can be justified using the demand schedule and the demand curve showing the slope of the curve in relation to price and quantity.
The law of supply however states that the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied. It implies that as the price of commodity X increases suppliers are willing to offer more units of the commodity and if the price lowers the suppliers are not willing to sell their commodities. The law of supply can further be explained using a supply schedule and supply curve showing the slope of the curve in relation to price and quantity
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