Demand | assumption of demand |

ASSUMPTION OF DEMAND:-

                   i.            Homogeneous Units:-

It is assumed that the units of product are homogeneous because if the quality of one unit is superior to other, then with an increase in the price the demand may not decrease.

                ii.            Income of consumer:-

The income of the consumer should remain the same because if his income increases then they may not decrease the demand even if the prices are high.

              iii.            Taste and fashion:-

The commodity used as a fashion or its taste is superior to other, then the consumer will not decrease the demand even the prices are high. So fashion and taste of consumer should not be changed.

              iv.            No substitute of product:­-

No substitute available of the product in the market. If the substitute of a commodity is available then people go for substitute and it will decrease the demand. So substitute should not be discovered.

                v.            No change in population:-

There should not be any change in population because increase in population will increase the demand of commodity.