Law of demand economics with examples / Assumptions of law of demand with examples

Hello friends.
This video is all about law of demand. Started with meaning, then continue with demand vs quantity demanded, graphical representation of law of demand and assumptions of law of demand.

Six assumptions of law of demand I had included in my video. No change in habits customs and income of consumers. Law of demand tells us that demand goes up with a fall in price and goes down with a rise in price. This law does not apply on necessaries of life. It is assumed that this law is not applicable in the case of necessaries of life. Because, an increase in the price of flour will not bring down its demand. Joint demand. Goods which have joint demand also falsify the law. Articles of distinction. Law of demand does not hold goods in case of those goods which confer social distinction. Fear of shortage in future. If there is a fear of shortage of a good in future its demand will increase in present as people would start storing. Change in the price of substitutes. This law does not apply in the case of tea and coffee, because these goods are substitutes of each other.

I hope you like my video on law of demand and its assumptions. Thanks for watching my video.


Time stamp
00:00 Welcome to my channel
00:27 Meaning of law of demand
01:03 Demand vs. quantity demanded
01:56 Graphical representation of law of demand
03:11 6 assumptions of law of demand.
03:14 No change in habits, customs and income of consumers
03:48 This law does not apply on necessaries of life
04:08 Joint demand
04:25 Articles of distinction
04:51 Fear of shortage in future
05:16 Change in the price of substitutes

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