ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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demand for fewer products.
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demand for more products.
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reduced demand for substitutes.
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increased demand for complements.
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Detailed explanation-1: -The demand for a good increases, if the price of one of its complements falls. The demand for a good decreases, if the price of one of its complements rises. The demand for a normal good increases if income increases.
Detailed explanation-2: -If price elasticity is greater than 1, the good is elastic; if less than 1, it is inelastic. If a good’s price elasticity is 0 (no amount of price change produces a change in demand), it is perfectly inelastic.
Detailed explanation-3: -Demand is generally considered to slope downward: at higher prices, consumers buy less. The point at which the two curves intersect represents the market-clearing price-the price at which demand and supply are the same. Prices can change for many reasons (technology, consumer preference, weather conditions).