ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
consumers decide to purchase a greater or lesser quantity of a product due to A CHANGE IN PRICE!!!!
|
|
|
consumers decide to purchase a greater or lesser quantity of a product due to a change in incomes
|
|
|
consumers decide to purchase a greater or lesser quantity of a product due to a change in tastes
|
|
|
consumers decide to purchase a greater or lesser quantity of a product due to a change in expectations
|
Detailed explanation-1: -Economists call this the Law of Demand. 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.
Detailed explanation-2: -A change in quantity demanded is represented as a movement along a demand curve. The proportion that quantity demanded changes relative to a change in price is known as the elasticity of demand and is related to the slope of the demand curve.
Detailed explanation-3: -If the percentage change in quantity demanded is greater than the percentage change in price, demand is said to be price elastic, or very responsive to price changes.
Detailed explanation-4: -As a rule of thumb, if the quantity of a product demanded or purchased changes more than the price changes, then the product is considered to be elastic (for example, the price goes up by 5%, but the demand falls by 10%).
Detailed explanation-5: -An inelastic demand is one in which the change in quantity demanded due to a change in price is small.