Lower the price, greater is the effective demand; higher the price; lesser is the effective demand. General Tendency, 2. It may be defined in Marshall’s words as “the amount demanded increases with a fall in price, and diminishes with a rise in price.” The law thus, states that other things being equal the quantity demanded varies inversely with price. Relation to Time, and . Characteristics of Law of Demand: The law of demand has three specific characteristics: 1. 3. The Law of Demand: The law of demand expresses a relationship between the quantity demanded and its price.
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