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प्रश्न
In order to encourage tourism in Goa, Government of India suggests to Indian Airlines to reduce air fare to Goa from four major cities - Chennai, Kolkata, Mumbai and New Delhi. If the Indian Airlines reduces the air fare to Goa, how will this affect the market demand curve for air travel to Goa?
उत्तर
If Indian Airlines reduces the air fare to Goa as suggested by the Government of India, this will result in a downward movement along the same demand curve, leading to an expansion of demand for air travel to Goa.
- Downward Movement Along the Demand Curve: The demand curve for air travel to Goa is typically downward sloping, which reflects the inverse relationship between price and quantity demanded. When the price (air fare) decreases, the quantity demanded increases, resulting in a movement downward along the existing demand curve.
- Expansion of Demand: An expansion of demand occurs when a decrease in price leads to an increase in the quantity demanded. In this scenario, as the airfare to Goa decreases, more people will likely choose to travel to Goa, either because it has become more affordable or because they perceive greater value at the lower price. This increase in quantity demanded is referred to as an expansion of demand.
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संबंधित प्रश्न
Explain the difference between (i) inferior goods and normal goods and (ii) cardinal utility and ordinal utility. Give example in each case.
Answer the following question.
Differentiate between the extension of demand and an increase in demand, using diagrams.
Answer the following question.
Give any three factors that can cause a rightward shift of the demand curve.
Explain the following condition:
Movement along the same indifference curve.
From the set of events/systems given in column A and the corresponding relevant fact given in column B, about China, choose the correct pair of statements:
| column A | column B |
| (1) Shift in the Demand Curve | (a) Increase in quantity demanded |
| (2) Movement along the demand curve | (b) Increase in price |
| (3) Shift in the Demand Curve | (c) Decrease in price |
| (4) Movement along the demand curve | (d) Snob effect |
What does an upward movement along the same demand curve indicate?
| Price in (₹) | Quantity demanded (units) |
| 20 | 100 |
| 25 | 70 |
The above example represents a situation of ______.
What is meant by expansion of demand?
What causes a downward movement along a demand curve?
What causes an upward movement along a demand curve?
