ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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demand changes when people’s incomes change
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demand changes when the prices of substitutes and complements change
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the quantity demanded changes when the price of the good changes
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the price of the good changes when people’s demand for the good changes
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Detailed explanation-1: -The law of demand states that when the price of a product goes up, the quantity demanded will go down – and vice versa.
Detailed explanation-2: -The law of demand refers to the inverse relationship between the price of a commodity and the quantity demanded of the commodity per time period.
Detailed explanation-3: -The proportion that quantity demanded changes relative to a change in price is known as the elasticity of demand and is related to the slope of the demand curve.
Detailed explanation-4: -Key points. The law of demand states that a higher price leads to a lower quantity demanded and that a lower price leads to a higher quantity demanded. Demand curves and demand schedules are tools used to summarize the relationship between quantity demanded and price.
Detailed explanation-5: -Law of demand is a fundamental principle of Economics, it states that quantity demanded is always inversely related to the price of the goods. In other words, with increase in price, quantity demanded will be less and vice versa.