Advertisements
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
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
Distinguish between ‘increase in demand’ and increase in quantity demanded of a good.
Demand for electricity is elastic.
Define or explain the following concept :
Effective demand .
State whether the following statement is true or false.
Perfectly inelastic demand curve is parallel to ‘X’ axis.
Write short answer for the following question.
Explain the Law of Demand.
Write whether the following statement is True or False:
Demand curve has a positive slope.
Define or explain the concept of Demand schedule.
If the income of a consumer increases, discuss briefly its likely impact on the demand for a inferior good, Good X.
If the price of good X rises and it leads to an increase in demand for good Y, both are ______ goods.
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.
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 |
Area under MC curve is equal to:
Aggregate demand can be decreased by:
Identify the market form which has indeterminate demand curve:
Which of the following is the reason behind the downward slope of demand option?
Which of the following statements is true?
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.
Read the passage given below and answer the questions that follow.
|
In India, Fixed deposits have long been a favourite investment choice of people, especially senior citizens, as it promise steady returns. It attracts those who are seeking a stable income. But it’s an illusion in the period of inflation. Inflation is the rate at which the general level of prices for goods and services rises, subsequently eroding the purchasing power of money. In simple terms, what money could buy today might not a few years down the line. Fixed deposits are financial instruments offered by banks where you deposit a lump sum amount for a fixed period at a predetermined rate of interest. Consider an investment of Rs 1 crore in a fixed deposit at a 6% annual interest rate and the annual rate of inflation is 5%. By the 10th year your pre inflation return is 1.79 crore, but post inflation it’s just 1.10 crore. The nominal value of investment in fixed deposits may appear to grow, inflation significantly diminishes their real value and purchasing power over time.
|
- What is the theme of the extract? (2)
- Differentiate between Demand pull and Cost push inflation. (2)
- What are the demand deposits and time deposits? (2)
- Since 1998 RBI has been using new measures of money supply, M0, M1, M2 and M3. Which one of these measures incorporates fixed deposit as one of its components? Mention the other components of that measure. (2)
