Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

There is a negative relation between price of a commodity and the quantity demand which is referred as __________.

Options:

Law of supply

Law of Demand

Law of Production

Law of Trade

Correct Answer:

Law of Demand

Explanation:

Law of Demand: Law of Demand states that other things being equal, there is a negative relation between demand for a commodity and its price. In other words, when price of the commodity increases, demand for it falls and when price of the commodity decreases, demand for it rises, other factors remaining the same.