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प्रश्न
The following table shows the amount of sugar bought by a household at different prices:
| Period | Price (₹ per kg) | Amount Bought (kg) |
| Jan. 2000 | ₹ 15 | 4 |
| Feb. 2000 | ₹ 16 | 5 |
Does the behaviour of household contradict the law of demand? Give reasons in support of your answer.
उत्तर
Yes, household behaviour defies the law of demand, which states that when prices rise, the quantity demanded falls and vice versa. There is a correlation between the price and quantity demanded for a good.
However, if sugar prices rise, so will demand. Thus, this occurs in exceptions to the law of demand or in the instance of the substitution effect, which states that if the price of a commodity rises, so does the demand for its substitute. Thus, it happens with normal goods as well, i.e., as consumer wealth rises, so does demand for normal goods, and sugar is a normal item. Thus, there are numerous arguments to support this answer.
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संबंधित प्रश्न
Complete the following statement:
Symbolically, the functional relationship between Demand and Price can be expressed as ______.
State with reason whether you agree or disagree with the following statement.
There is an inverse relationship between price and demand.
In case of relatively more elastic demand, the shape of the curve is
Distinguish between extension and contraction of demand.
The following table shows the demand schedule for 3 consumers in a market.
| Price in (Rs) | Consumer 1 Demand in (kgs) | Consumer 2 Demand in (kgs) | Consumer 3 Demand in (kgs) | Market Demand |
| 10 | 1 | 2 | (i) ______ | 6 |
| 8 | 2 | (ii) ______ | 4 | 9 |
| 6 | 3 | 4 | 5 | 12 |
| 5 | 4 | 5 | 6 | (iii) ______ |
Based on the above hypothetical schedule answer the following questions.
- What is the demand of Consumer 3 priced at Rs 10 (i)
- What is the demand of Consumer 2 priced at Rs 8 (ii)
- Calculate the total market demand priced at Rs 4 (iii)
- From the above given table examine the relationship between price and demand.
- Mention any one exception to the law of demand.
When at a price of ₹ 5 per unit of a commodity, A's demand is for 11 units, B's demand is for 14 units and C's demand is for units (assuming that there are only three consumers in the market), the market demand is ______.
Giffen goods are richman's goods
If a good is inferior good, then purchases of that good will decrease when ______.
Pick the option which does not belong to the group:
State whether the following statement is true or false. Give reasons.
The law of demand states a direct relationship between price and demand.
