According to the law of demand “Keeping other things constant (cetres paribus) when price of a good decreases the demand for it increases and when price increases the demand for the good decreases.”
Well, I believe that this statement is not acceptable as the other three “MAJOR” factors are not at all considered. People not just buy seeing the price feature this can be proved by the price elasticity of demand! Some people at even extremely high prices don’t hesitate to buy and for some inevitable goods even higher price doesn’t dilapidate it’s demand!
So how are we to determine demand!
I feel that all the factors of demand must be plotted on a graph and then later as in market demand curve one should add up all these graphs horizontally. I know this might seem crazy since there are a lot of factors that affect demand other than price;
they are- prices of available substitutes and complementary goods, income, tastes, advertisements, influences, availability, profit margin of the retailer etc.
Thus even though this might be a long process it is better knowing the exact demand rather than a half-baked one meant for no use!
CIAO ! 😀