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प्रश्न
State whether the following statement is true or false. Give reasons.
An increase in the demand for a commodity is due to a fall in its price.
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उत्तर
This statement is false.
Explanation:
An “increase in demand” is a rise in consumer purchasing due to favourable changes in non-price factors, such as a growth in consumer income, a change in tastes and preferences, or an increase in the price of a substitute goods. Graphically, this shifts the entire demand curve to the right.
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संबंधित प्रश्न
What is meant by an increase in demand?
If Coke and Fanta are close substitutes to each other, a rise in price of Coke will lead to ______ for Fanta.
Differentiate between extension and contraction of demand.
When the demand curve of a product shifts to the right, it represents a situation of ______.
What is an expansion of demand?
There are train and bus services between New Delhi and Jaipur. Suppose the train fare between the two cities comes down. How will this affect the demand curve for bus travel between the two cities?
Define contraction of demand (or decrease in quantity demanded).
With the help of a suitable diagram, explain expansion in demand.
Give two factors responsible for the shift of the demand curve to the right.
State whether the following statement is true or false. Give reasons.
A change in quantity demanded as a result of price change will imply a shift of the demand curve to the right.
