ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -The Law of Demand In other words, the higher the price, the lower the level of demand. 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.
Detailed explanation-2: -Simply stated, the law of demand says that as the price of a good increases, the quantity of that good or service demanded decreases. Likewise, as the price of a good or service decreases, the quantity of that good or service demanded increases.
Detailed explanation-3: -Greater competition among sellers results in a lower product market price.
Detailed explanation-4: -If the price is above the equilibrium level, then the quantity supplied will exceed the quantity demanded. Excess supply or a surplus will exist. In either case, economic pressures will push the price toward the equilibrium level.