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प्रश्न
How does change in the price of a substitute good affect the demand of the given good? Explain with the help of an example.
उत्तर
Substitute goods are goods which can be purchased in place of each other. The demand for
a commodity is in relation to the price of its substitute good. Assume tea and coffee as two
substitute goods. D1 is the demand curve for the demand for tea in the diagram.
When the price of tea is OP1, the quantity demanded is OT1 as shown in Fig (a). If there is an
increase in the price of the substitute good coffee, then the demand curve for tea shifts to
the right. Now, the consumer is willing to buy the P1C2 quantity of tea which is equal to OT2.
Greater the purchase of a commodity at its constant price points to a situation of increase
or forward shift in the demand curve. The consumer demand curve shifts from D1 to D2,
consuming more of tea even when its price is constant.
APPEARS IN
संबंधित प्रश्न
State and explain the ‘law of demand’ with its exceptions.
Market of a commodity is in equilibrium. Demand for the commodity "increases." Explain the chain of effects of this change till the market again reaches equilibrium. Use diagram.
Prices of other goods and demand for the given good.
Explain how do the following influence demand for a good:
i. Rise in income of the consumer.
ii. Fall in prices of the related goods
Distinguish between individuals demand and market demand.
If with the rise in the price of good Y, demand for good X rises, the two goods are: (Choose the correct alternative)
a. Substitutes
b. Complements
c. Not related
d. Jointly demanded
What does a rightward shift of demand curve indicate?
Define or explain the following concept.
Market Demand .
State with reason, whether you Agree or Disagree with the following statement.
The demand curve slopes downward from left to right.
Write explanatory notes or answer the following.
Aggregate demand
State with reasons whether you ‘agree’ or ‘disagree’ with the following statement.
Demand curve slopes downward from left to right.
The demand curve for foreign exchange is ______
Identify the correctly matched items from Column I to that of Column II:
| Column I | Column II |
| (1) Demand Curve of Perfect Competition | (a) V-shaped Curve |
| (2) Demand Curve of Monopoly | (b) U-shaped Curve |
| (3) Demand Curve of Monopolistic Competition | (c) Upward rising |
| (4) Demand Curve of Oligopoly | (d) In-determinant |
In case of perfect competition, AR curve is:
Explain why the demand curve slopes downwards.
Study the following table and answer the questions:
| Price of Ice Cream (₹) | Quantity Supplied | Market Supply | ||
| Seller A | Seller B | Seller C | (A + B + C) | |
| 50 | 0 | 2 | 5 | 7 |
| 100 | 1 | `square` | 10 | 15 |
| 150 | `square` | 6 | 15 | 23 |
| 200 | 3 | 8 | 20 | `square` |
| 250 | 4 | 10 | `square` | 39 |
Questions:
- Complete the above table.
- State whether the following statements are True or False.
(a) Market supply has a direct relation to price.
(b) As the price rises from ₹50 to ₹250, market supply rises from 7 to 39. This indicates an increase in supply.
Study the following diagram and answer the questions:
Questions:
- In which direction does the demand curve slope?
- What is the reason for the fall in demand of rice from Q0 to Q1?
