ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Supply is generally considered to slope upward: as the price rises, suppliers are willing to produce more. Demand is generally considered to slope downward: at higher prices, consumers buy less.

Detailed explanation-2: -Demand for a good that consumers will continue to buy despite a price increase is inelastic. Demand for a good that is very sensitive to changes in price is elastic. What is Elasticity of Demand? If there are few substitutes for a good, then demand will not likely decrease as price increases.

Detailed explanation-3: -Market demand is determined by a few factors, including the number of people seeking your product, how much they’re willing to pay for it, and how much of your product is available to consumers, from both your company and from your competitors. Total market demand can fluctuate over time-in most cases, it does.

Detailed explanation-4: -Price is dependent on the interaction between demand and supply components of a market. Demand and supply represent the willingness of consumers and producers to engage in buying and selling. An exchange of a product takes place when buyers and sellers can agree upon a price.