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Topic: Law of Demand The law of demand was established to show the correlation between prices of goods and services and the quantity of commodities in demand at a particular time. Price is the unit of a specific good or service which a buyer pays for, and the number of units at that price which are purchased constitute the quantity demanded. In this regard, there are determinants to demand such as price changes, consumer habits, changes in consumer income and changes in prices of substitutes which consequently lead to shift in the demand curve and movement along a demand curve. In demand of goods or services, customers tend to consider the cost of such commodities and make purchases in regards to the prices. However, in business there are many commodities which have similar purposes even though the cost is different. This phenomenon brings about the concept of opportunity cost. When the opportunity cost of consumers increases, they need to switch to another product which is a substitute for another product they have to give up on. For example, a consumer may purchase 3 kilograms of maize flour at Kshs. 70 per kilogram but in case the price goes up to Kshs. 80 per kilogram, the customer may opt to buy 2 kilograms. Therefore, the higher the prices rise, the lower the quantity demanded since they are inversely proportional. Movement along a demand curve occurs when prices of goods and services change and the quantity demanded also changes with respect to the previous demand relationship for such goods and services ("Law Of Demand").

https://www.google.com/search? q=causes+of+movement+along+the+demand+curve+example&tbm=isch&source=iu&ictx=1&fi r=-Ix0J6yBjh6vNM%253A%252CoCEQc4bMhMWzWM%252C_&vet=1&usg=AI4_kSr_3_Sy8UkVHaoKPrWuhNqyYxTCA&sa=X&ved=2ahUKEwi3d_6lu3hAhUP1RoKHQm8CysQ9QEwAHoECA0QBg#imgrc=-Ix0J6yBjh6vNM:&vet=1 Therefore, the movement in the curve will occur in the case of a change in the prices thus resulting in a change in the demand of such commodities. The primary determinant for the movement along a demand curve is the price changes. For example, in case the price of tomatoes goes up people will opt to buy fewer tomatoes and others will even opt to use alternative commodities such as carrots. However in the case where the prices of commodities drop to lower prices, then the demand of the affected commodities goes up. In this respect, the price of any commodity has to remain constant if the demand is to remain constant. A shift in a demand curve result from effects of other factors apart from changes in prices of commodities ("Law Of Demand").

https://www.google.com/search? q=shift+in+demand+curve&source=lnms&tbm=isch&sa=X&ved=0ahUKEwi88c-0m3hAhXRz4UKHYUQCLMQ_AUIDigB&biw=805&bih=598#imgrc=QDmIrWnweSjZTM: Therefore, less of a service or a good is demanded at different price levels or even when the price remains constant. There are factors which result to shift in the demand curve such as income changes of consumers, changes in the price of substitute or complement commodities. In the case where the income of consumers rises, the demand of a commodity tends to go up at the same price. Again when the prices of a substitute good or service drops, the demand of a commodity go down and when the price of the substitute goes up then the demand of a commodity may rise while the price remains constant. In conclusion, while price remains constant, other factors affect the demand of goods and services resulting to a shift in the demand curve. In conclusion, the demand of commodities is determined by different factors such as price changes, changes in consumer income, changes in prices of substitutes and also complements for the commodities. However, the law of demand explains in detail that in order to maintain or increase the demand levels of a commodity then other factors adjust in favor of the

consumers. Therefore, movement along a demand curve is mainly affected by price changes while the shift in a demand curve is determined by different factors other than price changes.

Works cited "Law Of Demand." Investopedia, 2019, https://www.investopedia.com/terms/l/lawofdemand.asp "Law Of Demand." Khan Academy, 2019, https://www.khanacademy.org/economics-financedomain/microeconomics/supply-demand-equilibrium/demand-curve-tutorial/a/law-ofdemand. "The Law Of Demand Explained Using Examples In The U.S. Economy." The Balance, 2019, https://www.thebalance.com/law-of-demand-definition-explained-examples-3305707. Becker, Gary S. Economic theory. Routledge, 2017. Cerreia, S., et al. "Law of Demand and Forced Choice." (2016). Tate, Wendy L., et al. "Integrating supply and demand." MIT Sloan Management Review 56.4 (2015): 16....