{"id":2234,"date":"2019-08-06T04:51:54","date_gmt":"2019-08-06T04:51:54","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2234"},"modified":"2019-08-06T04:51:54","modified_gmt":"2019-08-06T04:51:54","slug":"law-of-demand-vs-elasticity-of-demand","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/law-of-demand-vs-elasticity-of-demand\/","title":{"rendered":"LAW OF DEMAND VS ELASTICITY OF DEMAND"},"content":{"rendered":"\n
Before understanding the difference between Law of Demand vs Elasticity of Demand, both concepts should be clear:<\/p>\n\n\n\n
LAW OF DEMAND<\/strong><\/p>\n\n\n\n Law of demand<\/a> explains the relationship between price of the commodity and its demand. The law states that there is inverse or negative relationship between the demand and price of the commodity, ceteris paribus i.e. other things being constant. It means if the price of the commodity increases, the demand for commodity decreases and if the price of commodity falls, the demand for commodity increases.<\/p>\n\n\n\n ACCORDING TO MARSHALL<\/strong><\/p>\n\n\n\n \u201cThe law of demand states that amount demanded increases\nwith a fall in price and diminishes with the increase in price\u201d.<\/p>\n\n\n\n ACCORDING TO SAMUELSON<\/strong><\/p>\n\n\n\n \u201cLaw of Demand states that people will buy more at lower prices\nand buy less at higher prices, ceteris paribus\u201d. <\/p>\n\n\n\n ACCORDING TO BILAS<\/strong><\/p>\n\n\n\n \u201cThe Law of Demand states that other things being equal, the\nquantity demanded per unit of time will be greater, the lower the price and\nsmaller, the higher the price.\u201d<\/p>\n\n\n\n ELASTICITY OF DEMAND<\/strong><\/p>\n\n\n\n Elasticity of Demand<\/a> measures the extent to which quantity demanded of a commodity increases or decreases in response to increase or decrease in its price, the price of related goods or a change in the income of consumer.<\/p>\n\n\n\n ACCORDING TO PROF. DOOLEY<\/strong><\/p>\n\n\n\n \u201cThe elasticity of demand measures the responsiveness of\nquantity demanded of a good to change in its price, price of other goods and\nchange in consumer\u2019s income.\u201d<\/p>\n\n\n\n Thus, the measure of the proportion of change in demand due to given change in factors affecting demand is known as Elasticity of demand.<\/p>\n\n\n\n Law of Demand vs Elasticity of Demand is as follows:<\/p>\n\n\n\nLAW OF DEMAND VS ELASTICITY OF DEMAND<\/h3>\n\n\n\n