Answer the following questions What are the assumptions of the Law of Demand?

Answer the following questions

What are the assumptions of the Law of Demand?

ANSWER:

The law of demand is based on the following assumptions:

i. Size of the population remains the same.

ii. Income of the consumer remains unchanged.

iii. Prices of related goods remain unchanged.

iv. Consumers tastes and preferences remain unchanged.

v. Government’s policies remain unchanged.

vi. There is no change in the expectations about the future.