GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the quantity demanded of that good will decrease
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the quantity supplied of that good will decrease
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the quantity demanded of that good will increases
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the quantity supplied of that good will increases
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Detailed explanation-1: -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.
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: -Law of demand is a fundamental principle of Economics, it states that quantity demanded is always inversely related to the price of the goods. In other words, with increase in price, quantity demanded will be less and vice versa.
Detailed explanation-4: -The law of demand states that the price of a good or service varies inversely, or negatively with the quantity demanded. This means that when price increases the quantity demanded decreases and when price decreases the quantity demanded increases.
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.