Law of Demand is a qualitative statement. Comment.
Hey Arushi,
According to the law of demand, a consumer’s demand shares an inverse relationship with the price of a good and vice-versa, ceteris paribus (other things being constant). However the relation is not commensurable. The statement in this law gives us a direction of change in the demand due to change in the prices. Therefore, it is a mere qualitative statement as it does not tells us that how much change in demand will be there when the prices will fall/increase. It is the concept of elasticity of demand that explains the proportional relation of the demand and price.
According to the law of demand, a consumer’s demand shares an inverse relationship with the price of a good and vice-versa, ceteris paribus (other things being constant). However the relation is not commensurable. The statement in this law gives us a direction of change in the demand due to change in the prices. Therefore, it is a mere qualitative statement as it does not tells us that how much change in demand will be there when the prices will fall/increase. It is the concept of elasticity of demand that explains the proportional relation of the demand and price.