ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Key points. The law of demand states that a higher price leads to a lower quantity demanded and that a lower price leads to a higher quantity demanded. Demand curves and demand schedules are tools used to summarize the relationship between quantity demanded and price.

Detailed explanation-2: -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-3: -The law of demand states that when the price of a product goes up, the quantity demanded will go down – and vice versa.

Detailed explanation-4: -The law of demand states that the price of a good or service varies inversely, or negatively with the quantity demanded. This means that when price increases the quantity demanded decreases and when price decreases the quantity demanded increases.

Detailed explanation-5: -The Law of Demand In other words, the higher the price, the lower the level of demand. Because buyers have finite resources, their spending on a given product or commodity is limited as well, so higher prices reduce the quantity demanded. Conversely, demand rises as the product becomes more affordable.