ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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decrease in price
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decrease in consumer income
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increase in consumer incomes
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None of the above
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Detailed explanation-1: -An increase in quantity demanded is caused by a decrease in the price of the product (and vice versa). A demand curve illustrates the quantity demanded and any price offered on the market. A change in quantity demanded is represented as a movement along a demand curve.
Detailed explanation-2: -An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
Detailed explanation-3: -There is an inverse relation between the price of the commodity and the quantity demanded. Thus, for a decrease in the quantity demanded, the price must increase.
Detailed explanation-4: -The demand for a good increases, if the price of one of its complements falls. The demand for a good decreases, if the price of one of its complements rises. The demand for a normal good increases if income increases. The demand for an inferior good decreases if income increases.