ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If the price decreases, quantity demanded increases. This is the Law of Demand.

Detailed explanation-2: -The law of demand states that consumers buy more of a good when its price decreases and less when its price increases. The law of demand is the result of two separate behavior patterns that overlap, the substitution effect and the income effect.

Detailed explanation-3: -A decrease in the price of a product would result in a rise in purchases since the product is now more affordable, allowing more people to afford it and hence purchase more of it.

Detailed explanation-4: -As the price of a good goes up, consumers demand less of it and more supply enters the market. If the price is too high, the supply will be greater than demand, and producers will be stuck with the excess. Conversely, as the price of a good goes down, consumers demand more of it and less supply enters the market.

Detailed explanation-5: -Price is what the producer receives for selling one unit of a good or service. An increase in price almost always leads to an increase in the quantity supplied of that good or service, while a decrease in price will decrease the quantity supplied.