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प्रश्न
State the factors leading to fall in demand by an individual consumer
उत्तर
Factors affecting demand for a good by an individual:
1) Own price of the good: Assume that other things remaining constant, an increase in the price of a good will decrease the demand for a good, and a decrease in the price of a good will increase the demand for the good. There is an inverse relationship between the price of a good and the demand for a good
2) Price of other goods: Demand for a commodity is influenced by the change in the price of other goods. When the price of one good fall, it becomes cheaper in relation to another good. If there is an increase in the price of the substitute good coffee, then the demand curve for tea shifts to the right. On the other hand, if there is a decrease in the price of the substitute good coffee, the demand curve for tea shifts to the left even when its price is constant. If there is an increase in the price of a good, then the demand for another good will decline. So, the demand curve shifts parallel to the left. On the other hand, if there is a decrease in the price of a good, then the demand for another good will increase and so the demand curve shifts parallel to the right.
3) Income of consumers: A change in income causes a change in the demand for a good based on the variety of goods available in the market. There will be an increase in the demand for normal goods with a rise in income level. On the other hand, the demand for inferior goods will decrease with an increase in income
4) Consumers' tastes and preferences: Assume that other things remaining constant, if consumers have more preference for a good than other goods, then the demand for those goods will increase. On the other hand, if consumers have no preference for a good than other goods, then the demand for those goods will decrease.
5) Population size: An increase or decrease in population size will influence the demand for goods in the market. There is a positive relationship between the size of the population and the demand for a good.
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संबंधित प्रश्न
Define demand. Name the factors affecting market demand.
Any statement above demand for a good is considered complete only when the following is/are mentioned in it. ( choose the correct alternative)
a) Price of the good
b) Quantity of good
c) Period of time
d) All of the above
Fill in the blank using proper alternative given in the bracket:
Perfectly inelastic demand curve is.....................................................
Fill in the blank with proper alternatives given in the bracket:
Indirect demand is also known as _______ demand.
Explain the following concepts or give definitions.
Demand
Fill in the blank with appropriate alternatives given below:
When the price of petrol goes up, demand of cars will ___________.
Match the following:
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Group A
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Group B
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1. Demand and price
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a. Substitute goods
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2. Tea and coffee
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b. Inverse relation
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3. Inferior goods
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c. Joint demand
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4. Factors of production
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d. Distribution of income
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5. Pen and ink
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e. Composite demand
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f. Giffen goods
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g. Indirect demand
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Do you agree with the following statement? Give reason
Many factors influence the demand for a commodity.
Distinguish between substitute goods and complementary goods, with examples.
Good X and Good Y are substitute goods. If price of Good X increases, discuss briefly its likely impact on the demand for Good Y.
There is a sudden change in climatic conditions resulting in hot weather. Assuming no change in the price of the cold drinks, it will lead to ______
Law of demand states the ______ relationship between price and quantity demanded.
Increase in price of substitute goods leads to ______
From the set of statements given in Column A and Column B, choose the correct pair of statement:
| Column A | Column B |
| 1. Reduction of pollution | (a) Microeconomics |
| 2. Problems due to unemployment | (b) Microeconomics |
| 3. Shift in the demand curve | (c) Microeconomics |
| 4. Government expenditure on building of roads | (d) Microeconomics |
Aggregate demand can be decreased by:
Which of the following is correct?
Which of the following statements is false?
Identify the correctly matched pair of the items in Column A to that of Column B.
| Column A | Column B | ||
| (1) | Increase in demand for goods | (a) | Leftward shift in the demand curve |
| (2) | Decrease in demand | (b) | Perfectly Elastic Demand |
| (3) | Ed = ∞ | (c) | Increases in the income of the consumer |
| (4) | Downward Sloping | (d) | Income elasticity of Demand |
Assertion (A): Demand deposits are not legal tenders.
Reason (R): They are with the bank, so only can be used as a legal tender when cheques are issued for the transfer.
