Price rise in future must not be expected - law of demand, Managerial Economics

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Price rise in future must not be expected - law of demand

If the buyers of a commodity expect that its price will increase in future they raise its demand in response to an initial price rise. This behaviour of buyers violates the law of demand. Consequently, for the operation of the law of demand it is essential that there shouldn't be any expectations of price rise in the future. 


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