In any economy, laws are require for running it. Science also has certain laws for its success depends on the numerical value of these laws and their reliability exactions like science.
Economics also has certain laws since it also is a science, they are know as economic laws.
The way in which relationships between the cause and effect are determined following the laws in science, and similarly, it is done in economics.
In Marshall’s words, “a science progress by increasing the number and exactness of the law”.
For understanding the nature of economic laws, it is important to understand the meaning of the word ‘law’ first.
Like other laws of science, the economic laws also while representing the relationship between ‘cause’ and ‘effect’ demonstrate some very important laws.
For example, if the price of a commodity rises there is a fall in its sale, and if there is a fall in the price of a commodity its sale rises.
Here the price of commodities rises and falloff prices are the ‘cause’ and the fall or rise in sales is the ‘result’.
The law that explains the relationship between ‘cause’ and ‘effect’ is the “Law of Demand”.
About – CA Amit Popli teacher of Economic Laws CA Final
CA Final Faculty (CA Amit Popli)
CA Amit Popli is a Chartered Accountant with experience in insolvency.
He has received a Certificate of Appreciation from the ICAI for teaching law at various levels.
He has extensive expertise in teaching CA students from several streams.
Currently, he works for Aldine Ventures Private Limited, a company that pioneered the delivery of CA education to students via satellite mode in more than 150 sites across India.
His classes have a few distinct characteristics:
100% Coverage of the Syllabus
A colorful book with a lot of charts.
The use of unique animation technology for teaching Real-world examples and debate on all recent scams/incidents, such as Satyam, IL&FS.