ECONOMICS (CBSE/UGC NET)

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: -A change in quantity demanded refers to a movement along a fixed demand curve–that’s caused by a change in price. A change in demand refers to a shift in the demand curve–that’s caused by one of the shifters: income, preferences, changes in the price of related goods and so on.

Detailed explanation-4: -Decrease in demand lowers the price Decrease in supply raises the price. Figure 4.14(a) shows the effects of an increase in demand and a decrease in supply. An increase in demand shifts the demand curve rightward, and a decrease in supply shifts the supply curve leftward.

Detailed explanation-5: -An increase in demand happens when more is purchased at the same price and the same quantity is purchased at a higher price. A decrease in demand happens when less is purchased at the same price or the same quantity at a lower price.