ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Equilibrium refers to the situation where two curves meet each other that are demand and supply curve. It fluctuates when the demand and supply changes. It means if both demand and supply increases then output increases and the price remains the same.

Detailed explanation-3: -Inverse Relationship of Price and Demand The price of a good or service in a marketplace determines the quantity that consumers demand. Assuming that non-price factors are removed from the equation, a higher price results in a lower quantity demanded and a lower price results in higher quantity demanded.

Detailed explanation-4: -If the price of a good falls, the quantity demanded of that good increases. The relationship between the quantity demanded and the price of a good when all other influences on buying plans remain the same. Demand is a list of quantities at different prices and is illustrated by the demand curve.