ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -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-3: -As we can see on the demand graph, there is an inverse relationship between price and quantity demanded. 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.

Detailed explanation-4: -There is a direct relationship between price and quantity supplied. Price changes the quantity demanded, it moves along the demand curve. Price changes the quantity supplied, it moves along the supply curve. Demand decreases, the price decreases.