Answer to Question #43154 in Economics of Enterprise for parvathi

Question

1.Assumptions of Law of Demand

Answer 1

Assumptions of law of demand:


—-There should not be any change in income of consumer—
-There should not be any change in Taste ,preferences, habits and fashion of consumers—
-There should not be any change in Price of the related commodity—
-Population should be constant—
-Should not anticipate any price change in the future —
-The seasons and climate should not change—
-No change in government policy—
-Commodity should be normal one—
-There should be no change in the population size—
-Distribution of income and wealth should be equal—
-There should be continuous demand—
-There should be perfect competition in the market