law of demand
Not what you're looking for?
Please help with the following problem. Provide at least 300 words in the solution.
Explain the law of demand. Why does a demand curve slope downwards? Distinguish between a change in demand and a change in quantity demanded.
Purchase this Solution
Solution Summary
The following posting helps with a problem involving utility and demand. This solution helps characterize the law of demand. It explains why a demand curve slopes downwards and helps distinguish between a change in demand and a change in quantity demanded. The explanation is given in 360 words.
Solution Preview
Problem: Explain the law of demand. Why does a demand curve slope downwards? Distinguish between a change in demand and a change in quantity demanded.
Solution:
The law of demand states that if all other things remain constant, then as the price of a good or service falls, the quantity demanded by consumers will rise. That is, there is an inverse relationship between the price and demand, ceteris paribus. This inverse relationship can be represented on a graph, with price on the vertical axis and quantity on the horizontal axis, ...
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.