When the quantity of commodities purchased increases, the price ______
increases
decreases
remains constant
have no direct relation
Price is directly proportional to the quantity of commodities purchased. Hence, when the quantity increases, price increases.
If the demand for a commodity increases and the supply decreases, what will be the effect on equilibrium price and quantity? Illustrate with diagrams.
When the quantity demanded of a commodity increases with increase in income and decreases with decrease in income, the income elasticity of demand will be