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Question
Give the meaning of Income demand.
Solution
It refers to the quantity demanded of a commodity in relation to the income of the consumer, other things being constant. When income increases the demand for normal goods shifts to the right while the demand curve for inferior good shifts be to the left.
RELATED QUESTIONS
State two factors affecting the market demand for a commodity.
Which of the following pairs of goods are most likely substitutes?
Which of the following is not a determinant of demand?
If due to fall in the price of good X, demand for Y rises, the two goods are ______.
From the set of statements given in Column I and Column II, choose the correct pair of statements:
| Column I | Column II |
| A. Normal goods | (i) Goods the demand for which tends to fall with increase in income. |
| B. Inferior goods | (ii) Goods which cannot be used in place of one another. |
| C. Substitute goods | (iii) Goods which can be used in place of one another. |
| D. Joint demand | (iv) Goods the demand for which rise with increase in income. |
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Explain the impact on demand of complementary goods.
If price of X increases, then demand for Y too increases. What is the relationship between goods X and Y? Give an example.
With the help of a suitable example explain the effect of a rise in price on the demand for complementary goods.
Explain any three determinants of market demand.
Explain how quantity demanded for commodity X will be affected by Government policy.
Define market demand.
Give the meaning of Price demand.
Give the meaning of Cross demand.
What are Veblen goods?
Tea and coffee are examples of ______.
Detergent powder and detergent cake are examples of ______.
