ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is the Law of Demand ? This is a fundamental economic principle that holds that the quantity of a product purchased varies inversely with its price. In other words, the higher the price, the lower the quantity demanded. And at lower prices, consumer demand increases.

Detailed explanation-2: -On the other hand, When, the price of the commodity remains constant but there is a change in quantity demanded due to some other factors, causing the curve to shift in a particular side, it is known as shift in demand curve.

Detailed explanation-3: -There is a movement along the demand curve when the quantity wanted of a single commodity changes due to a change in price, while all other factors remain constant. The demand curve shifts when the amount required of a particular commodity changes at each possible price due to a change in one or more other factors.

Detailed explanation-4: -Price Elasticity of Demand The proportion to which the quantity demanded changes with respect to price is called elasticity of demand. A good or service that is highly elastic means the quantity demanded varies widely at different price points.

Detailed explanation-5: -The change in quantity demanded resulting from a change in purchasing power is known as the income effect.