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प्रश्न
Explain the following diagram with reference to the concept of Giffen goods.
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उत्तर
Giffen products are inferior items whose demand increases as the price of a good rises. This is an exception to the Law of Demand.
For example, a commodity such as jowar is a requirement for poor people. When its price rises. Consumers are obliged to reduce their use of other items such as milk and meat, and since jowar is the cheapest, they will buy and consume more of it.
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संबंधित प्रश्न
Distinguish between:
Inferior goods and superior goods
State with reason whether you agree or disagree with the following statement:
There are no exceptions to the law of demand.
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Questions:
- Diagram’ A ‘represents _____in demand (1m)
- Diagram ‘B’ represents _____in demand (1m)
- In diagram ‘A’ movement of demand curve is in_____ direction (1m)
- In diagram ‘B’ movement of demand curve is in______ direction (1m)
State with reasons whether you agree or disagree with the following statement:
When price of Giffen goods fall, the demand for it increases.
‘Price is an indicator of quality.’ The statement applies to ______.
Mention one exception to the law of demand. Give one point only.
State two circumstances under which the demand curve slopes upwards to the right.
Give one point each of similarity and dissimilarity between Giffen goods and Veblen goods.
Which of the following best describes a Giffen good?
Why do people buy more luxury goods when prices go up, defying the usual law of demand?
