State the law of demand and explain why the other-things-equal assumption is critical to it
Please provide the best answer for the statement.
The law states that, other things being equal, as price increases, the corresponding quantity demanded falls. Restated, there is an inverse relationship between price and quantity demanded with everything else held constant. The other-things-equal assumption refers to constant prices of related goods, income, tastes, and other things that affect demand besides price. The law of demand only looks at the relationship between price and quantity demanded.
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