ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A decrease in demand can be depicted from a leftward shift in the demand curve. Thus, according to economists, this leftward shift in the demand curve shows buyers’ willingness and ability to consume fewer units of the given product at each price level.

Detailed explanation-2: -Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price. Demand is based on needs and wants-a consumer may be able to differentiate between a need and a want, but from an economist’s perspective they are the same thing.

Detailed explanation-3: -The income effect identifies the change in consumers’ demand for goods and services based on their incomes. In general, as one’s income rises, they will begin to demand more goods. Similarly, A decrease in income results in lower demand.

Detailed explanation-4: -An inferior good is an economic term that describes a good whose demand drops when people’s incomes rise. These goods fall out of favor as incomes and the economy improve as consumers begin buying more costly substitutes instead.