2. • In economics, the law states that, all else being equal, as the price of
a product increases, quantity demanded falls; likewise, as the price
of a product decreases, quantity demanded increases.
• In other words, the law of demand states that the quantity
demanded and the price of a commodity are oppositely related,
other things remaining constant.
• If the income of the consumer, prices of the related goods, and
preferences of the consumer remain unchanged, then the change in
quantity of good demanded by the consumer will be negatively
correlated to the change in the price of the good.
• Mathematically, the inverse relationship may be expressed as a
causal relation:

3. • It is downward sloping indicating that between the price of a product
and the quantity demanded a negative or inverse relationship exists
• A demand curve is a graphical
depiction that abides by the law of
demand. It shows how the quantity
demanded of some product during a
specified period of time will change as
the price of that product changes,
holding all other determinants of the
quantity demanded constant. Price is
measured on the vertical axis and
quantity demanded on the horizontal
axis.

4. Price
Rs.
Goods Demanded by individual in a day
X in units Y in units Z in units
100
95
90
85
80
10
20
30
40
50
20
15
12
10
5
10
10
10
10
10
Construct Demand Graph for X, Y, Z

5. 1. Law of Demand Curve
2. Exceptional Law of Demand Curve
3. Increase in Demand Curve
4. Decrease in Demand Curve
5. Extension in Demand Curve
6. Contraction in Demand Curve

6. Assumptions
No change in Consumer Income
No change in Consumer Preference
No change in the Tastes and Fashions
No change in the Price Related
Product
No change in the population
No change in the Govt. Policy
No change in Weather Conditions
Exceptions
Giffen Goods/ Inferior Goods
Veblen Goods
Consumer Expectation
Consumer Psychological Bias
Necessaries
Impulse Buying

7. Thank You & Any Doubts
Law of Demand : Its Exceptions