Explain law of demand with the help of a demand schedule.

Explanation

(i) It states that price of the commodity and quantity demanded are inversely related to each other, when other factors remain constant.
It means, quantity demanded of the commodity rises due to fall in price of the commodity and vice-versa.
(ii) Ceteris Paribus means :
(a) Price of Related commodity remains constant.
(b) Income of a consumer remains constant.
(c ) Taste and preferences of a household remains constant.

(iii) The law of demand makes a qualitative statement only and not quantitative. It indicates the direction of change in the amount demanded and it does not indicate the magnitude of change.
(iv) Law of demand is one sided. It explains only the effect of change in price on the quantity demanded. It states nothing about the effect of change in quantity demanded on the price of the commodity.