Prices of other goods must remain constant - law of demand, Managerial Economics

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Prices of other goods must remain constant

Changes in the prices of other goods frequently impinge on the demand for a particular commodity. If prices of commodities for which demand is inelastic rise, demand for a commodity other than these in all probability would decline even though there may not be any change in its price. Thus, for the law of demand to operate it is imperative that prices of other goods don't change.


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