ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.

Detailed explanation-2: -The quantity demanded is an amount per unit of time. For example, the amount per day or per month. Other things remaining the same, • If the price of good rises, the quantity demanded of that good decreases. If the price of a good falls, the quantity demanded of that good increases.

Detailed explanation-3: -An increase in demand will cause an increase in the equilibrium price and quantity of a good.

Detailed explanation-4: -This option is correct because when quantity demanded decreases in response to a change in price, there must be an upward movement along the demand curve. It means as price rises, leading to a reduction in the quantity demanded, there is upward and leftward movement along the curve.

Detailed explanation-5: -the quantity demanded of a product is inversely related to its price. An increase in the price of a product causes a decrease in quantity demanded because of the income and substitution effects.