CameraIcon

SearchIcon

MyQuestionIcon

437

You visited us 437 times! Enjoying our articles? Unlock Full Access!

Price Floor

The relations...

Question

The relationship between price and quantity is according to Law of demand.

A

Positive

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Inverse

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

C

Neutral

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Direct

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Inverse
According to the Law of Demand there is inverse relationship between price and demand of commodity.
If price rise demand falls and vice versa.

Suggest Corrections

thumbs-up

0

Similar questions

Q. For normal goods, the Law of Demand states that the relationship between price and quantity of goods is ______.

[1 mark]

Q. The inverse relationship between variations in the price and quantity demanded is not due to __________.

Why is there an inverse relationship between the price of a commodity and its quantity demanded?

Q. Assertion :The demand curve has negative slope showing inverse relationship between price and the quantity demanded. Reason: This applies only to Giffen goods

Q. “The Law of Demand states other things being equal, the quantity demanded of a commodity increases when its price falls and decreases when its price rises. There are several assumptions of the Law of Demand.”
Which of these must change in order to apply the ‘Law of Demand?

[1 mark]

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Market Interventions and Policy Failures

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard XI Economics

Join BYJU'S Learning Program

CrossIcon