ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Meeps and Blops are two goods that are related to each other. When the price of Meeps goes down, the demand for Blops goes down. What kind of goods are Meeps and Blops? substitutes: when the price of Meeps drops, people will buy more of them, which lowers the demand for Blops (Meeps substitute).

Detailed explanation-2: -Two goods are complements if an increase in the price of one causes a decrease in the demand for the other.

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.

Detailed explanation-4: -Nearly all demand curves share the fundamental similarity that they slope down from left to right, embodying the law of demand: As the price increases, the quantity demanded decreases, and, conversely, as the price decreases, the quantity demanded increases.

Detailed explanation-5: -Suppose the price of doughnuts were to fall. Many people who drink coffee enjoy dunking doughnuts in their coffee; the lower price of doughnuts might therefore increase the demand for coffee, shifting the demand curve for coffee to the right.