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: -When supply decreases, the price of the good increases. Inversely, when the supply of the good increases, the price falls. A similar relationship exists between price and demand. When the demand for the good increases, the price of the good also increases.

Detailed explanation-3: -When quantity demanded decreases in response to a change in price: the demand curve shifts to the right.

Detailed explanation-4: -Changes in factors like average income and preferences can cause an entire demand curve to shift right or left. This causes a higher or lower quantity to be demanded at a given price. Ceteris paribus assumption. Demand curves relate the prices and quantities demanded assuming no other factors change.