00:01
So the question says that according to the law of demand, the quantity demanded of any commodity is what kind of relationship to its price, other things being equal.
00:11
So let's talk about a definition of the law of the demand.
00:14
The law of demand states that there is inverse relationship between the price of a good or service and the quantity of demand by the consumer.
00:25
So when the price inverse relationship.
00:30
So this means when you have increase of the price of a good or the service, this will lead to the quantity, the reduced quantity demand demanded by consumer.
01:06
And the reason for this inverse relationship, first of all, is that the consumer are looking for substitution.
01:14
So which we call it substitution effect.
01:17
So when the price of goods rises, consumers switch to a cheaper substitute.
01:21
So this is one of the reasons why the price goes up, the demand goes down, because first of all, due to the substitution...