BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the law of supply
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the law of demand
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the law of increasing cost
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the law of maximum satisfaction
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Detailed explanation-1: -the law of demand. As per the law of demand, the price of a good or service usually has an inverse relationship with the quantity demanded. Thus, consumers tend to buy less of a good or service when its price increases and vice-versa.
Detailed explanation-2: -The law of demand states that when the price of a product goes up, the quantity demanded will go down – and vice versa. It’s an intuitive concept that tends to hold true in most situations (though there are exceptions).
Detailed explanation-3: -The Law of Demand is as follows: All else equal, as price falls, the quantity demanded of a product will rise whereas as the price rises, the quantity demanded of a product will fall. In other words, price and quantity have an inverse relationship.
Detailed explanation-4: -The ‘Law Of Demand’ states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa. Demand elasticity is a measure of how much the quantity demanded will change if another factor changes.