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Essay text:
It shows two points on the Demand Curve (Grey Line) which have been plotted depending on the prevalent market price of the product. And, the equivalent level in sales is also visible.
One can clearly see that when the price is lower, the quantity demanded is higher, and when the price is hiked, the quantity demanded goes down.
The Law of Demand and the demand curve are governed by many factors which include, but are not restricted to -
• The monetary condition
• The nature of goodsExpectations
• Distribution of Income
• The macroeconomic circumstances
Now, there are many exceptions to this rule, more so in the modern world where a lot of new tangible and intangible factors have crept into the equations...
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