Question

“The Law of Demand states other things being equal, the quantity demanded of a commodity increases when its price falls and decreases when its price rises. There are several assumptions of the Law of Demand.”
If we refer to the determinants of demand, then ‘other things’ in the Law of Demand refers to which of the following?

[1 mark]

• A. Consumer ability
• B. Producer mood
• C. Consumer income
• D. Producer supply

Answer 1

The correct option is C Consumer income

The ‘other things’ in the Law of Demand refer to the factors other than the price of the commodity that determine the demand.