Explain the law of demand with the help of a demand schedule and a demand curve. Also explain its exception using the distinction between substitution and income effects.
Introduction The Law of Demand states that, ceteris paribus, when the price of a good falls, the quantity demanded increases, and vice versa. This negative price-quantity relationship is captured by a demand schedule and portrayed in the demand curve. Demand Schedule and Demand Curve A demand schedule is a tabular representation showing quantity demanded at […]