Multiple choice

According to law of demand, which of the following effects the demand of goods?

  1. Supply of goods demanded

  2. Production of goods demanded

  3. Income of the consumer

  4. Price of the goods demanded

  5. Factors of production
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D Correct answer
Explanation

According to the law of demand, we only consider the effect of change in price on the demand for a commodity.The demand of a commodities increase with decrease in their prices and decrease with increase in their prices. 

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