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प्रश्न
Answer the following question:
How would the demand for a commodity be affected by a change in the "tastes and preferences" of the consumers in favour of the commodity? Explain using a diagram.
उत्तर
In the figure, initially at price OP1, consumer purchases OQ1 units of good. With the change in the taste and preferences of the consumers in favour of the commodity, the demand curve shifts parallelly outwards to D'D'. At the new demand curve, the consumer purchases more units of the good (OQ2) but at the same price of OP1.
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संबंधित प्रश्न
What is meant by monotonic preferences?
What do you mean by monotonic preferences?
If the consumer has monotonic preferences, then can he/she be indifferent towards bundles (10, 8) and (8, 6)?
Suppose a consumer’s preferences are monotonic. What can you say about his/her preference ranking over the bundles (10, 10), (10, 9) and (9, 9)?
Suppose your friend is indifferent to the bundles (5, 6) and (6, 6). Are the preferences of your friend monotonic?
Explain the following condition:
Shift from a lower to a higher indifference curve.
