ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increases
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decreases
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remains unchanged
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reverses
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Detailed explanation-1: -Economists call this the Law of Demand. 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.
Detailed explanation-2: -Demand Increase: price increases, quantity increases. Demand Decrease: price decreases, quantity decreases. Supply Increase: price decreases, quantity increases.
Detailed explanation-3: -As a price rises, two things occur: There is an increase in quantity supplied (a movement along the supply curve) There is a decrease in quantity demanded (a movement along the demand curve)
Detailed explanation-4: -Understanding Inferior Goods In economics, the demand for inferior goods decreases as income increases or the economy improves.
Detailed explanation-5: -If the price of a good increases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been an increase in demand.