Law of Demand Delineation and Its Exceptions: The Case Study of Pakistan

Abstract

The aim of this study is to study the law of demand and it’s exceptions in Pakistan. Forensic method has been used to conduct the study by using data from 2008 to 2019. It shows that people are buying more and more vehicles by the passage of time. Demand of vehicles is increasing day by day. From this simpler explanation, we need to study the matter in deeper sense. It has been done with the help of further latest data up to the year 2022 related to vehicles. On the other hand, monthly sales of motor cars in Pakistan since February 2021 to January 2022 shows the most up to the date picture of the consumers towards the motor car purchase. It shows that due to various reasons, consumers demand more cars but with steeper fluctuations. We want to now the reasons behind this and found that the change in GDP per capita is responsible to the change in the behavior of the consumers towards motor car purchase. As per capita GDP increases, consumers increase the purchase of motor cars. So, the law of demand is clearly proven in Pakistan.