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प्रश्न
Briefly explain any two reasons for the occurrence of the law of demand.
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उत्तर
- Law of Diminishing Marginal Utility: Law of diminishing marginal utility states that as a consumer consumes more and more units of a commodity, the utility derived from each successive unit goes on decreasing. So the demand for a commodity depends on its utility. If the consumer gets more satisfaction, he will pay more. As a result, the consumer will not be prepared to pay the same price for additional units of the commodity. The consumer will buy more units of the commodity only when the price falls.
- Income Effect: Income effect refers to an effect on demand when the real income of the consumer changes due to the change in the price of the given commodity. When the price of the given commodity falls, the purchasing power (real income) of the consumer increases. As a result, he can purchase more of the given commodity with the same money income.
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संबंधित प्रश्न
Find the odd word
Assumptions to law of demand -
The Law of Demand was introduced by ______.
State with reason whether you agree or disagree with the following statement.
There is an inverse relationship between price and demand.
Explain the law of demand.
Write a statement of the Law of Demand.
State with reason whether you agree or disagree with the following statement :
When price of Giffen goods fall, the demand for it increases.
If a good is inferior good, then purchases of that good will decrease when ______.
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.
State whether the following statement is true or false. Give reasons.
The law of demand states a direct relationship between price and demand.
What does the term "ceteris paribus" mean in relation to the Law of Demand?
