--%>
Assignment Help - homework help

State the assumptions of Law of Demand

State the assumptions of Law of Demand?

E

Expert

Verified

Law of demand is based upon certain fundamental assumptions. They are given as below:

1) There is no change in the consumers’ preference and taste
2) Income must remain constant.
3) Prices of other goods must not change.
4) There must be no substitute for the commodity.
5) The commodity must not confer any type of distinction.
6) The demand for the commodity must be continuous.
7) People must not expect any change within the price of the commodity.

   Related Questions in Managerial Economics

  • Q : Function of Profit Maximization in

    For a purely competitive firm operating within a competitive labor market as: (1) the marginal resource cost of labor exceeds the wage rate. (2) the supply of labor is perfectly inelastic. (3) total labor costs are independent of the

    		•
  • Q : Requirement of equal paying amounts A

    A requirement of equal pay for workers along with equal amounts of education, responsibility, and experience is termed as the doctrine of: (1) marginal productivity. (2) non-exploitation. (3) central wage planning. (4) comparable wort

    		•
  • Q : Define the term cost plus pricing

    Define the term cost plus pricing.

    		•
  • Q : Purely competitive labor market is

    When this purely competitive labor market is firstly in equilibrium at D0L, S0L, a move to equilibrium at D1L, S0L would be inconsistent along with increases in: (w) the price of output. (x) labor productivi

    		•
  • Q : Most elastic to least elastic ranking

    For most kinds of labor, the most accurate ranking of labor supplies through most elastic to least elastic is most likely: (1) firm, small industry, occupation. (2) economy, individual, occupation. (3) firm, economy, occupation. (4) individual worker,

    		•
  • Q : Explain managerial economics as a tool

    Does managerial economics as a tool for decision making? Explain this term.

    		•
  • Q : Describe the term Incremental Revenue

    Describe the term Incremental Revenue in details.

    		•
  • Q : Illustration of specific training The

    The knowledge gained while an Apple employee learns a specialized technique on an iPod assembly line is an illustration of: (w) comparative technological advantage. (x) specific training. (y) on-the-job leveraging. (z) general training.

    Q : Wage Rates and Opportunity Costs

    Reasons why workers are often paid more than they could make in their best alternative positions do not include: (1) human capital valued by many firms. (2) membership in a union along with a labor contract. (3) holding a minimum wage job when most unskilled workers a

    		•
  • Q : Explain the Expenditure Method of

    Explain the Expenditure Method of Measurement of Elasticity.

    		•