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प्रश्न
Income of the buyers and demand for a good.
उत्तर
Income of the Buyer and the Demand for a Good.
A change in the consumer’s income has corresponding changes in the demand for different types of goods in the market. The effects of change in income on demand for different types of goods are as follows:
Normal goods are goods which have a positive relationship between income and quantity demanded. Assume that other things remaining constant, an increase in the consumer’s income will lead to an increase in the quantity demanded and a decrease in the consumer’s income will lead to a decrease in the quantity demanded.
Inferior goods are goods which have a negative relationship between income and quantity demanded. Assume that other things remaining constant, an increase in the consumer’s income will lead to a decrease in the quantity demanded and a decrease in the consumer’s income will lead to an increase in the quantity demanded
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संबंधित प्रश्न
When is the demand for a good said to be inelastic?
Explain the change in demand of a good on account of change in prices of related goods.
Explain how the demand for a good is affected by the prices of its related goods. Give examples.
Give reasons or Explain the following statements.
All desires are not demand.
State whether the following statements are TRUE or FALSE with reason.
The demand for consumption goods is direct demand.
Choose the correct answer :
The demand of a salt is _________.
State Whether the following statements are TRUE or FALSE:
Demand will not increase by coming of new customers.
State Whether the following statements are TRUE or FALSE:
Demand elasticity concept is useful for labour unions.
Choose the correct answer :
In the period of scarcity of a particular commodity _________.
Choose the correct answer :
Demand elasticity of habitual goods is _________.
Suppose the price elasticity of demand for a good is −0.2. If there is a 5% increase in the price of the good, then by what percentage will the demand for the good go down?
Suppose the price elasticity of demand for a good is −0.2. How will the expenditure on the good be affected if there is a 10% increase in its price ?
Suppose there was a 4% decrease in the price of a good, and as a result, the expenditure on the good increased by 2%. What can you say about the elasticity of demand ?
Distinguish between:
Increase in demand and Decrease in demand
Give economic terms.
Price being constant, demand falls due to unfavourable changes in other factors.
