ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The law of demand is an economic principle that explains the negative correlation between the price of a good or service and its demand. If all other factors remain the same, when the price of a good or service increases, the quantity of demand decreases, and vice versa.

Detailed explanation-2: -According to the law of demand, this relationship is always negative: the response to an increase in price is a decrease in the quantity demanded. For example, if the price of scented erasers decreases, buyers will respond to the price decrease by increasing the quantity of scented erasers demanded.

Detailed explanation-3: -Economists call this positive relationship between price and quantity supplied-that a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied-the law of supply.

Detailed explanation-4: -demand for products which consumers dislike and would prefer not to have to purchase. Negative demand for a particular product exists when consumers, generally, would be prepared to pay more than the price of the product to avoid having to buy it, as in the case of unpleasant and painful medical treatment.

Detailed explanation-5: -Price is dependent on the interaction between demand and supply components of a market. Demand and supply represent the willingness of consumers and producers to engage in buying and selling. An exchange of a product takes place when buyers and sellers can agree upon a price.