LAW OF DEMAND: Law of demand introduced by Professor Alfred Marshall in his book “Principles of Economics” in 1890. A person willingness to purchase and capacity to pay for the commodity is called demand. In other words, the demand for anything at a given price is the amount of it which will be bought per unit of time at that price. Demand is a effective desire of an individual but all desires are not demand. If a person has income but no willingness to purchase a commodity then there is no demand. On the other hand, if a person has willingness to purchase a commodity but he has income or no income then there is demand. That’s why demand is an effective desire. The demand of commodities is divided into 2 categories- Individual demand- when a single consumer or a household demand for commodities at a particular time at a given price. Market demand- the sum of total demand by all the household or consumers at a particular time at a given price. The relation between Price & Demand
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