12. The lnw of demand states that other things equal when the price of a good a
ID: 1142351 • Letter: 1
Question
12. The lnw of demand states that other things equal when the price of a good a falls, the demand for the good rises b. nises, the quantity demanded of the good rises e nises, the demand for the good falls d. falls, the quaptity demanded of the good rises 13 The market demand curve a, is the sum of all individual demand curves b is the demand curve for every product in an industry c. shows the average quantity demanded by individual demanders at ench d. is always flater then an individual demand curve price 14 An incresse in demand is represented by a movement downward and to the nght along a demand curve b movement upward and to the left along a demand curve c. rightward shift of a demand curve d. leftward shift of a demand curve 5. If a good is normal, then on increase in income will result in ar) a increanse in the demand for the good b decrease in the demand for the goodExplanation / Answer
12. d) falls, the quantity demanded of the good rises.
Law of demand states that increase in price causes decrease in quantity demanded of good and vice-versa, keeping all other factors constant. It shows inverse relationship between price and quantity demanded.
13. a) is the sum of all individual demand curves.
Market demand curve is the sum total of all individual demand curves. It is the horizontal summation of individual demand curve.
14. c) rightward shift of a demand curve.
When demand of commodity increases due to change in factors other than the price of commodity itself then there is increase in demand and this causes rightward shift of demand curve.
15. a) increase in the demand for the good.
Normal goods are those goods whose income effect is positive which means demand increases with increase in the income of consumer and vice-versa.
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