ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Current demand is not related to future price. If the price is expected to drop, current demand will fall.

Detailed explanation-2: -The current demand for a good is positively related to its expected future price (i.e. if you expect a price to rise, you will buy the good sooner but if you expect the price to fall you will buy the good later). Changes in the size of a population will also affect the demand for most products.

Detailed explanation-3: -If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.

Detailed explanation-4: -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).

Detailed explanation-5: -Due to the decrease in income of the consumer, the purchasing power of the consumer will also decrease. So the demand for the product in the market will also decrease. Resultantly demand will change even if the price and supply of the product remain the same. This is called a decrease in demand.