The Law of Demand is based on

(A) Manufacturer’s preference
(B) Seller’s preference
(C) Supplier’s preference
(D) Consumer’s preference

Correct Answer : Consumer’s preference
Question Asked : SSC (10+2) Level DEO & LDC Exam 2013
Explanation : The Law of Demand states that, all else being equal, as the price of a product increases, quantity demanded lowers; likewise, as the price of a product decreases. quantity demanded increases. Demand is derived from consumers' tastes and preferences, and it is bound by income. In other words, given a limited income, the consumer must decide what goods and services to purchase. Each consumer will purchase different things because individual preferences and incomes differ.
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Tags : Microeconomics
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