ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease. An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.

Detailed explanation-3: -a) As the price declines, the real income of the consumer increases. This statement is true because a decrease in price increases the purchasing power of the consumer. Suddenly, the consumer can afford more of the products so the demand for it increases.

Detailed explanation-4: -Key Takeaways In the most general sense (and assuming ceteris paribus conditions), an increase in aggregate demand corresponds with an increase in the price level; conversely, a decrease in aggregate demand corresponds with a lower price level.

Detailed explanation-5: -Explanation: An increase in quantity demanded refers to the situation when there is a decrease in the price in the market because decreased price encourages consumers to make more demand for output at a lower price.