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प्रश्न
Distinguish between normal goods and inferior goods, with examples.
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उत्तर
| Basis | Normal Goods | Inferior Goods |
| Definition | Normal goods are those goods whose demand increases with the increase in income and whose demand decreases with a fall in income. | Inferior goods are those goods whose demand increases with a fall in income and whose demand falls decreases with a rise in income. |
| Income Effect | In case of normal goods, there is a positive income effect. | In case of inferior goods, there is a negative income effect. |
| Examples | Branded Clothes, Wheat, Milk | Coarse Cereals, Public Transportation - Bus, rail pass |
संबंधित प्रश्न
The demand of a commodity, when measured through the expenditure approach, is inelastic. A fall in its price will result in : (choose the correct alternative)
(a) No change in expenditure on it.
(b) Increase in expenditure on it.
(c) Decrease in expenditure on it.
(d) Anyone of the above.
Demand for a good is termed inelastic through the expenditure approach when if (choose the correct alternative)
a) Price of good falls, expenditure on it rises
b) Price of the good falls, expenditure in it falls
c) Price of the good falls, expenditure on it remains unchanged
d) Price of the good rises, expenditure in it falls
Explain the following concept:
Effective demand
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Demand for necessary goods is inelastic.
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Demand curve has a positive slope.
fill in the blank with appropriate alternatives given in the bracket:
Demand for salt is ___________.
Fill in the blank with appropriate alternatives given below:
When less is purchased at the constant price, it is called _______ in demand.
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Individual demand is a demand by single buyer.
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Derived demand
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Demand for factors of production is derived demand.
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The quantity of a commodity that a consumer is willing to buy and is able to afford, given the prices of goods and the consumer's tastes and preferences is called demand for the commodity. Whenever one or more of these variables change, the quantity of the good Chosen by the consumer is likely to change as well. The relation between the consumer's optimal choice of the quantity of a good and its price is very important and this relation is called the demand function. Thus, the consumer's demand function for a good gives the amount of the good that the consumer chooses at different levels of its price when the other things remain.
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Milk is used for making curd, sweets and chocolates.
What type of demand does milk have? Give a reason.
Which of the following is a flow concept associated with demand?
Micro view of demand relates to ______.
