ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The same inverse relationship holds for the demand for goods and services. However, when demand increases and supply remains the same, the higher demand leads to a higher equilibrium price and vice versa. Supply and demand rise and fall until an equilibrium price is reached.

Detailed explanation-2: -An increase in demand, all other things unchanged, will cause the equilibrium price to rise; quantity supplied will increase. A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease.

Detailed explanation-3: -A Veblen good is a good for which demand increases as the price increases.

Detailed explanation-4: -If the price of a commodity and the demand for its related goods increase, it means that they can be used in place of each other, that is they are substitutes.

Detailed explanation-5: -Price is dependent on the interaction between demand and supply components of a market. Demand and supply represent the willingness of consumers and producers to engage in buying and selling. An exchange of a product takes place when buyers and sellers can agree upon a price.