Purchase Solution

law of demand

Not what you're looking for?

Ask Custom Question

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
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

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.

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.

View More Free Quizzes
Related BrainMass Solutions

  • Economics

    Please state the law of demand and law of supply and explain how the law of demand and the law of supply interact to bring about equilibrium. 3.

  • Supply and demand

    406357 Supply and demand: law, factors, price elasticity Explain the following Law of demand and law of supply Factors affecting demand and supply Price elasticity of demand Factors affecting price elasticity of demand Law of demand and law of supply

  • the law of demand through the income and substitution effect

    254278 In your own words, explain the law of demand through the income and substitution effects, using a price increase as a point of departure for your discussion. Explain the law of demand in terms of diminishing marginal utility.

  • law of demand

    Thus the Law of Demand has not been violated in this case - in fact, the law of demand is not applicable here because the underlying assumptions are not met. The law of demand is referenced.

  • Law of demand and supply

    The law of demand states that "the quantity demanded of a good varies inversely with its price. Does the observed change in the purchase and price of airline tickets violate the law of demand? why or why not?

  • Labour demanded and productivity

    What is the law of diminishing marginal productivity? Give an example from your workplace/household of the law of diminishing marginal productivity?. A) Why is the demand of labor a derived demand?

  • Econcomics

    401819 International Economics: Law of Diminishing returns, demand curves, price elasticity 1. What real-world examples of the Law of Diminishing Returns do you have to share? Why this 'law' is also referred to as the "flowerpot law?" 2.

  • Say's Law

    519512 Say's Law Say's Law states that supply creates its own demand. Please explain the meaning of this statement with references?

  • change in supply and a change in demand

    In this piece we intend to define and analyze the meaning of economics, the law of demand and the law of supply. We will also enumerate the factors that cause changes in supply and demand.

View More Related Solutions