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# Summary

• Demand for a product depends upon various factors like price of product, income of the individual, prices of related goods, consumerâ€™s income, etc.
• Law of demand states that, there is inverse relation between price and demand when other things remaining constant
• In case of expansion or contraction, there will be movement along the same demand curve.
• In case of increase or decrease there will be shift in the demand curve.
• Price elasticity of demand is a measure of the extent to which the quantity demanded of a good responds to a change in its price
• Income elasticity measures the response of quantity demanded to a percentage change in the income of consumer.
• Price Elasticity < 1, demand is inelastic, Price Elasticity > 1, demand is elastic and Price Elasticity = 1, demand is unitary
• Cross elasticity is the percentage change in the quantity demanded as a result of change in the price of its related product