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प्रश्न
Briefly explain any two reasons for the occurrence of the law of demand.
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उत्तर
- Law of Diminishing Marginal Utility: Law of diminishing marginal utility states that as a consumer consumes more and more units of a commodity, the utility derived from each successive unit goes on decreasing. So the demand for a commodity depends on its utility. If the consumer gets more satisfaction, he will pay more. As a result, the consumer will not be prepared to pay the same price for additional units of the commodity. The consumer will buy more units of the commodity only when the price falls.
- Income Effect: Income effect refers to an effect on demand when the real income of the consumer changes due to the change in the price of the given commodity. When the price of the given commodity falls, the purchasing power (real income) of the consumer increases. As a result, he can purchase more of the given commodity with the same money income.
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संबंधित प्रश्न
Symbolically, the functional relationship between Demand and Price can be expressed as ______.
The movement on or along the given demand curve is known as ______
Distinguish between extension and contraction of demand.
Any statement about demand for a good is considered complete only when the following is/are mentioned in it:
If prices of cars rise, many people may put off buying a new car. So the demand for petrol will fall.
If a good is inferior good, then purchases of that good will decrease when ______.
State the law of demand.
What is meant by the income effect of a fall in the prices of a commodity?
Explain four circumstances under which the law of demand does not operate.
Which of the following is NOT an assumption of the Law of Demand ?
