GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1.Income and price of commodity
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2.Price and quantity of a commodity
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3.Income and quantity demand
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4.Quantity demanded and quantity supplied
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Detailed explanation-1: -It states that the quantity purchased varies inversely with price. In other words, the higher the price, the lower the quantity demanded.
Detailed explanation-2: -Definition: The law of demand states that other factors being constant (cetris peribus), price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.
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 when the prices of a commodity reduce its quantity demanded increases and vice-versa keeping other factors constant. Other factors include price of related goods, the income of the consumer, taste and preferences, etc.
Detailed explanation-5: -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.