ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economists call this the Law of Demand. 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.

Detailed explanation-2: -A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve. The graph on the left lists events that could lead to increased demand.

Detailed explanation-3: -A change in quantity demanded refers to a change in the specific quantity of a product that buyers are willing and able to buy. This change in quantity demanded is caused by a change in the price.

Detailed explanation-4: -Finally, if the quantity purchased changes less than the price (say, -5% demanded for a +10% change in price), then the product is deemed inelastic.

Detailed explanation-5: -A change in quantity demanded refers to a movement along a fixed demand curve–that’s caused by a change in price. A change in demand refers to a shift in the demand curve–that’s caused by one of the shifters: income, preferences, changes in the price of related goods and so on.