ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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. On a graph, an inverse relationship is represented by a downward sloping line from left to right.

Detailed explanation-2: -True. When the price of a commodity rises the demand will fall. Quantity demanded and price are inversely related this means that as the price of the goods increase the demand of that commodity decreases and vice versa. This is because of the law of diminishing marginal utility.

Detailed explanation-3: -The quantity demanded is an amount per unit of time. For example, the amount per day or per month. Other things remaining the same, • If the price of good rises, the quantity demanded of that good decreases. If the price of a good falls, the quantity demanded of that good increases.

Detailed explanation-4: -Law of demand is a fundamental principle of Economics, it states that quantity demanded is always inversely related to the price of the goods. In other words, with increase in price, quantity demanded will be less and vice versa.

Detailed explanation-5: -The given statement is False Changes in the price levels of the goods create movement in the same demand and result in a shift in the demand curve.