Which one is the assumption of law of demand
A). Price of the commodity should not change
B). Quantity demanded should not change
C). Prices of substitutes should not change
D). Demand curve must be linear
Prices of substitutes should not change
Prices of substitutes should not change is the assumption of law of demand. For example if the price of Coke is decreased then it will lead to fall in the demand for Pepsi even when the price of Pepsi has remain constant as Pepsi is close substitute of Coke, in the same way if the price of Coke is increased than it will lead to rise in demand for Pepsi.
1. When the perfectly competitive firm and industry are in long run equilibrium, then
2. Question 4:Explain the steps taken by the government in developing rural markets.
3. Which of the following is NOT a characteristic of perfect competition?
4. When marginal is negative, it must be true that
5. Question 12:Briefly explain the concept of the cost function.
8. Medium term loans are provided for a period of _____.
9. The exception to law of demand is
10. If price changes by 1% and supply changes by 2%, then supply is