ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The quantity demanded (qD) is a function of five factors-price, buyer income, the price of related goods, consumer tastes, and any consumer expectations of future supply and price. As these factors change, so too does the quantity demanded.

Detailed explanation-3: -The equilibrium of supply and demand in each market determines the price and quantity of that item. Moreover, a change in equilibrium in one market will affect equilibrium in related markets. For example, an increase in the demand for haircuts would lead to an increase in demand for barbers.

Detailed explanation-4: -What Are the Factors That Affect Quantity Demanded? Five key factors affect quantity demanded: the price of the good, the income of the buyer, price of related goods, consumer tastes, and the customer’s expectations of future supply and price.

Detailed explanation-5: -There exists an inverse relationship between price and quantity demanded. As the price of a good or service goes up, the number sold (quantity demanded) goes down. As the price of a good or serve goes down, the number sold (quantity demanded) goes up.