ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Quantity demanded is affected by the price of the product. If the price goes up, the demand will go down. If the price goes down, demand will go up. Price and demand are inversely related in this way.

Detailed explanation-2: -If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.

Detailed explanation-3: -Demand Increase: price increases, quantity increases. Demand Decrease: price decreases, quantity decreases. Supply Increase: price decreases, quantity increases.

Detailed explanation-4: -A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease. An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.

Detailed explanation-5: -Substitutes and Complements Explanation A substitute good is a good that serves the same purpose as another good for consumers. On the other hand, a complement is a good that is consumed along with another good. A complementary good can also be a good that adds value to another good when consumed together.