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प्रश्न
Explain the following diagram with reference to the concept of Giffen goods.
The demand curve can slope upwards from left to right. Give one argument in support of this statement.
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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
Explain briefly anyone determinant of an exceptional demand curve.
State with reason whether you agree or disagree with the following statement:
There are no exceptions to the law of demand.
State with reasons whether you agree or disagree with the following statement:
When price of Giffen goods fall, the demand for it increases.
State with reason whether you agree or disagree with the following statement:
When price of Giffen goods fall, the demand for it increases.
What is contraction in demand?
Give one point each of similarity and dissimilarity between Giffen goods and Veblen goods.
Why are prestige good an exception to the law of demand?
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?
What happens to the demand for necessities like salt or electricity when their prices increase?
