Answer:
The Law of Demand states that other factors remaining constant, the demand for a commodity expands with fall in its price and contracts with rise in its price. In other words, Law of Demand states that there is an inverse relationship between the price of a commodity and its quantity demanded. Assumptions of the Law of Demand are as follows: (i) There should be no change in the price of substitute or complementary goods. (ii) There should be no change in the income of the consumer. (iii) There should be no change in the taste, preference and habit of the consumer. (iv) There should be.no change in number of family members, government policy, etc. (v) There should be no change in the distribution of income. (vi) No expectation of further changes in the availability of a commodity. Or The various kinds of demand are as follows: (i) Price Demand It refers to the quantity demanded of a commodity in relation to its price, other things remaining unchanged, e.g. with decrease in price, demand for normal good rises. (ii) Income Demand It refers to the demand of a commodity in relation to income of the consumer, other things remaining constant, e.g. with increase in income, demand for normal good rises. (iii) Cross Demand It refers to the relationship between the price of a commodity and demand for related goods, other things being constant, e.g. with increase in price of one commodity (tea), demand for its substitute commodity (coffee) rises. (iv) Derived Demand When demand for one commodity is derived from demand for some other commodity, then it is known as derived demand, e.g. demand for house leads to demand for cement, bricks, etc.
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