Can You Explain The Law Of Demand?

Law of demand state the inverse relationship between price level and quantity demanded.If price of the commodity falls its demand will raise and vice versa.There are some assumption of this law .There should be no change in the income of the consumer .The income of the consumer should be given.There should not be change in the advertise expenditure .there should not be change in season.there should not be change in the no of consumer.etc.due to inverse relationship between price level and quantity demanded downward slopping curve is obtained .

Explain the law of demand. Why does the demand curve slope downward. How is a market demand curve derived from individual demand curves?

It is a law of microeconomics and describes the affect of demand on price and conversely the affect of a price change on demand and consumer behavior. The law of demand basically states that if supply and all other variables are held constant and an increase in demand occurs, then it would lead to an increase in the market price and similarly a decrease would lead to a decrease. In the same way it states that the higher the price of a product, the lesser would be the demand. You can see the graphhere.

The demand curve is closed that there is a negative relationship between price and quantity, except Geffen paradox. Such relationship in economics is known as law of demand or demand function. Accordingly the law of demand is stated as other things remaining the same when the price of any commodity prices its demand contract while the fall in the price of any commodity results in the expansion of its demand. The complete demand function in general form in given as Qd = f (p, Ps, Y, E, Nc).

Where Qd = quantity demanded, P= price of the good, Ps= pries of substitute, T= taste of the consumer, E= expectation of the consumer and Nc= number of consumers as Ps, T, E, Nc are held constant. Accordingly the demand function is stated as Qd = f(p).

As there are certain assumption of the law of demand and there exists an inverse or negative relationship between price and quantity demanded. Hence, the form of a standard equation of demand function it is as or it is represented by the following equation;
Q= a- bT where a and b are the parameters while negative sign represents an inverse relation between price and quantity demanded.

For each of the following events described, shift the curve or curves in the appropriate way.  Use a market diagram for each question to draw the new curve or curves and to indicate the changes.  Record for each event what has happened to demand, what has happened to supply, and what has happened to equilibrium values of price and quantity.

What does the higher the price, the smaller the quantities

Law of demand states that the Quantity demanded varies inversely with the price.

Law of demand states that as the price of goods or commodity or product fall there will be increase in demend and same way if price increase leads to decrease in quantity demanded.
Quantity demanded Qd= a-b(Px) where Px is any given price on y axis