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प्रश्न
Explain four circumstances under which the law of demand does not operate.
Many a times the inverse relationship between price and the amount purchased does not hold good. Explain this statement giving reasons.
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उत्तर
The law of demand does not operate under the following circumstances.
- The law of demand does not apply to Giffen goods. A decrease in the price of Giffen goods tends to lower demand, whereas an increase in the price tends to expand demand.
- When consumers think that high-priced goods are invariably of higher quality, the law of demand fails.
- The law of demand does not apply to prestigious commodities such as diamond jewels and costly cars. The demand for such things is viewed as a status symbol. As their prices rise, purchasing them becomes more prestigious.
- Consumers may buy more of a commodity, even at higher prices, if they anticipate a shortage of that commodity in the near future.
- The law of demand does not apply to the necessities of life also.
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संबंधित प्रश्न
Symbolically, the functional relationship between Demand and Price can be expressed as ______.
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.
The movement on or along the given demand curve is known as ______
In case of relatively more elastic demand, the shape of the curve is
Distinguish between extension and contraction of 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 with the rise in price of good Y, demand for good X rises, the two goods are:
State the law of demand.
What is meant by the income effect of a fall in the prices of a commodity?
Identify the correct statement from the following alternatives:
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?
