ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Represents the law of demand
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Shows that as the price of a good rises, consumers increase the quantity they demand
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Indicates how the quantity demanded changes when incomes rise and the good is a normal good
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Indicates how demand changes when incomes rise and the good is a normal good
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Detailed explanation-1: -When the price of commodity increases, its demand decreases. Similarly, when the price of a commodity decreases its demand increases. The law of demand assumes that the other factors affecting the demand of a commodity remain the same. Thus, the demand curve is downward sloping from left to right.
Detailed explanation-2: -The slope of the demand curve (downward to the right) indicates that a greater quantity will be demanded when the price is lower. On the other hand, the slope of the supply curve (upward to the right) tells us that as the price goes up, producers are willing to produce more goods.
Detailed explanation-3: -The demand curve is downward sloping, illustrating the law of demand. This expresses the concept that as price increases, the quantity demanded decreases.
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.