📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    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
    More Alternate Sources of Finance Questions
    ask-question