# ECONOMICS (CBSE/UGC NET)

## ECONOMICS

### DEMAND

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following would cause a change in the quantity demanded for a product?
 A changing consumer tastes B increasing consumer income C decreasing price of product D changing prices of related products
Explanation:

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: -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-3: -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-4: -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. Expected future income and expected future prices influence demand today.

Detailed explanation-5: -Income is not the only factor that causes a shift in demand. Other things that change demand include tastes and preferences, the composition or size of the population, the prices of related goods, and even expectations.

There is 1 question to complete.