ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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consumers must only want to purchase the good
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consumers must only be able to purchase the good
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consumers must be operating in a definite physical market
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consumers must want and be able to purchase the good
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consumers tastes must be in line with what is available and affordable
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Detailed explanation-1: -The Law of Demand states that there is an indirect relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to buy. In other words, as the price of an item increases, buyers are less willing and able to buy it and vice versa.
Detailed explanation-2: -The law of demand is a guiding economic principle that the price and demand for goods or services are inversely related to each other. In other words, if a product goes up in price, then demand for the product goes down, but if the price goes down, demand for the product goes up.
Detailed explanation-3: -The law of demand states that when the price of a product goes up, the quantity demanded will go down – and vice versa.
Detailed explanation-4: -Economists define demand as the quantity of a good or service that buyers are willing and able to buy at all possible prices during a certain time period. Notice that there are two components to demand: willingness to purchase and ability to pay.