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Question
Mr Vijay purchases 2 litres of milk per day when it is priced at ₹ 35 per litre. Suppose he has some guests at home and consequently he purchases 6 litres of milk on that day. What will you call it?
Options
Increase in demand
Increase in quantity demanded
Solution
Increase in demand
Explanation:
This scenario describes an increase in quantity demanded because the change in the quantity of milk purchased is due to a specific, temporary situation (having guests) rather than a change in the price of milk. An increase in demand would generally refer to a shift in the demand curve due to factors like income, preferences, or a change in the price of related goods, not just a temporary change in circumstances.
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| Case | Price (₹) | Quantity (kg) |
| I | 10 | 20 |
| 10 | 10 | |
| II | 10 | 20 |
| 5 | 20 |
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Explain the diagram given alongside.
The following table shows a change in the demand. Read the table carefully and answer the question that follows:
| Case I | Case II | ||
| Price (₹) | Quantity | Price (₹) | Quantity |
| 10 | 20 | 10 | 20 |
| 10 | 10 | 5 | 20 |
What type of change is it, decrease in demand or contraction in demand? Give a reason.
