NCRD’S STERLING COLLEGE OF

ARTS, COMMERCE AND SCIENCE

PRESENTED BY: HEENA SOLANKI

CLASS: F.Y.BMS
 DISTINCT FEATURES :
A. ORIGINAL STATEMENT OF LAW.
B. EXPLAINATION OF LAW.
C. TABLE AND DIAGRAM OF LAW OF DEMAND.
D. ASSUMPTIONS TO LAW OF DEMAND.
 A. ORIGINAL STATEMENT
OF LAW:
 THIS LAW IS INTRODUCED BY
PROF. ALFRED MARSHAL.

ACCORDING TO HIM…..Other
things being equal quantity demanded
of A commodity varies inversely with
its price
 B. EXPLANATION OF LAW:
 LAW OF DEMAND EXPLAINS THE FUNCTIONAL
RELATIONSHIP BETWEEN PRICE AND DEMAND OF A
COMMODITY.

 PRICE AFFECTS PURCHASING POWER.

 AT HIGHER PRICE LESS QUANTITY DEMANDED DUE

TO LESS PURCHASING POWER & VICE VERSA.

 IN SHORT, PRICE & DEMAND ARE INVERSELY

RELATED WITH EACH OTHER.
TABLE & DIAGRAM
PRICE DEMAND Y
(IN RS.) (IN
UNITS) D

SL
O
PI
P2

N
10 50

G
P

DO
R

W
P

NW
I
20 40

AR
C D
P1

D
E

30 30 0 Q2 Q Q1
X

40 20 QUANTITY DEMANDED

50 10
 ASSUMPTION TO LAW OF
DEMAND:
 NO CHANGE IN INCOME OF CONSUMER.
 NO CHANGE IN GOVERNMENT POLICIES.
 NO CHANGE IN TASTE, HABITS & FASHION
OF CONSUMER.
 NO CHANGE IN CLIMATIC CONDITIONS.
 NO CHANGE IN NO. OF CONSUMERS.
 NO INTRODUCTION OF NEW PRODUCTS.
 NO EXPECTATIONS OF FUTURE PRICES.
 THANK
YOU…!!!!!