ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -So, for a fall in the price of the tennis rackets, the purchasing power of the consumer increases, and the demand for the tennis balls will rise due to the law of demand.

Detailed explanation-2: -Because buyers have finite resources, their spending on a given product or commodity is limited as well, so higher prices reduce the quantity demanded. Conversely, demand rises as the product becomes more affordable. As a result, demand curves slope downward from left to right, as in the chart below.

Detailed explanation-3: -A change in demand represents a shift in consumer desire to purchase a particular good or service, irrespective of a variation in its price. The change could be triggered by a shift in income levels, consumer tastes, or a different price being charged for a related product.

Detailed explanation-4: -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.