ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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diminishing marginal utility
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law of demand
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demand elasticity
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None of the above
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Detailed explanation-1: -Definition: The law of demand states that other factors being constant (cetris peribus), price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.
Detailed explanation-2: -The law of demand states that the quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded. This occurs because of diminishing marginal utility.
Detailed explanation-3: -The Law of Demand states that the quantity demanded of a product varies inversely with its price. The Law of Demand is called a “law” because it has proven true after repeated studies and tests, and it is consistent with common sense and observation.
Detailed explanation-4: -"The greater the amount to be sold, the smaller must be the price at which it is offered in order that it may find purchasers, or in other words, the amount demanded increases with a fall in price and diminishes with a rise in price” (Alfred Marshall).
Detailed explanation-5: -The law of demand states that when the price of a product goes up, the quantity demanded will go down – and vice versa.