New Click here to Enroll for SIDBI MSME Expert Classes by Experts

    Register

    Question

    As per law of demand, the quantity demanded of a normal

    product increases with _____
    A Decrease in Price Correct Answer Incorrect Answer
    B Increase in price Correct Answer Incorrect Answer
    C Increase in Income Correct Answer Incorrect Answer
    D Decrease in price of substitute good Correct Answer Incorrect Answer
    E Increase in price of complement goods Correct Answer Incorrect Answer

    Solution

    Law of demand ·         It explains relationship between the quantity demanded of a commodity and its unit price. ·         As per it, demand varies inversely with price, other thing being equal. ·         rise in the price of a commodity or service is followed by a reduction in the quantity demanded and fall in the price is followed by extension in demand, with other conditions remaining the same.

    Practice Next