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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 the contraction in demand?
As a result of rise in consumer's income, the demand curve for coarse-grain (inferior good) will:
Differentiate between extension and contraction of demand.
Give two reasons for the shift of the demand curve towards the left.
With the help of a suitable diagram, distinguish between a change in quantity demanded and a change in demand.
What is meant by an increase in demand?
What causes a downward movement along a demand curve?
What does a rightward shift of demand curve indicate?
Explain the following diagram.
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.
