ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The way markets respond to a change in price is highly predictable
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The laws of demand and supply are easy to understand
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Economists rely on laws as much as any other profession
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Economic theory rests almost entirely on speculation about how consumers behave.
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Detailed explanation-1: -Answer and Explanation: The correct option is a) As the price of a good increases, the quantity demanded of that good decreases. The law of demand says that everything being constant; as the price of the good increases, then there will be a decline in the quantity demanded of that good.
Detailed explanation-2: -The Law of Demand states that there is an indirect relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to buy. In other words, as the price of an item increases, buyers are less willing and able to buy it and vice versa.
Detailed explanation-3: -Law of demand states that there is an inverse relation between the price of a commodity and its quantity demanded, assuming all other factors affecting demand remain constant. It means that when the price of a good falls, the demand for the good rises and when price rises, the demand falls.
Detailed explanation-4: -The prices of the goods or services and their quantity demanded are inversely related when the other factors remain constant. In other words, when the price of any product increases, then its demand will fall, and when its price decreases, its demand will increase in the market.