ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Price goes up qty demanded goes down.
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Price goes down, qty demanded goes up.
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Price goes up, demand goes down.
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All answers are correct.
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Detailed explanation-1: -The law of demand states; there is an INVERSE relationship between price and quantity demanded. Which of the following is not a true statement? Price goes up qty demanded goes down.
Detailed explanation-2: -The law of demand states that the quantity demanded of a good shows an inverse relationship with the price of a good when other factors are held constant (cetris peribus). It means that as the price increases, demand decreases. The law of demand is a fundamental principle in macroeconomics.
Detailed explanation-3: -Inverse Relationship of Price and Demand The price of a good or service in a marketplace determines the quantity that consumers demand. Assuming that non-price factors are removed from the equation, a higher price results in a lower quantity demanded and a lower price results in higher quantity demanded.
Detailed explanation-4: -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.