ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Law of demand states that when price increases, the demand for the commodity falls and when price decreases, the demand for the commodity rises. The demand curve shows that price and quantity demanded are inversely proportional and also inversely related.

Detailed explanation-2: -The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. In a typical representation, the price will appear on the left vertical axis, the quantity demanded on the horizontal axis.

Detailed explanation-3: -Inverse Relationship of Price and Demand Thus, the price of a product and the quantity demanded for that product have an inverse relationship, as stated in the law of demand. An inverse relationship means that higher prices result in lower quantity demand and lower prices result in higher quantity demand.

Detailed explanation-4: -Answer and Explanation: The correct answer is E: it shows the relationship between product demand and product price.

Detailed explanation-5: -demand curve, in economics, a graphic representation of the relationship between product price and the quantity of the product demanded. It is drawn with price on the vertical axis of the graph and quantity demanded on the horizontal axis.