Which one is not a precondition of law of demand? A Price of substitutesB Income of the consumerC WagesD Population
Question
Which one is not a precondition of law of demand? A Price of substitutesB Income of the consumerC WagesD Population
Solution
The option that is not a precondition of the law of demand is C. Wages. The law of demand states that as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa. This law is influenced by price, income of the consumer, and price of substitutes. However, wages, which is the amount a worker is paid, is not a direct factor affecting the law of demand. It could indirectly affect a consumer's income, but it is not a precondition of the law of demand.
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