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प्रश्न
Explain four circumstances under which the law of demand does not operate.
Many a times the inverse relationship between price and the amount purchased does not hold good. Explain this statement giving reasons.
Mention the circumstances under which the law of demand does not operate.
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उत्तर
The law of demand does not operate under the following circumstances.
- The law of demand does not apply to Giffen goods. A decrease in the price of Giffen goods tends to lower demand, whereas an increase in the price tends to expand demand.
- When consumers think that high-priced goods are invariably of higher quality, the law of demand fails.
- The law of demand does not apply to prestigious commodities such as diamond jewels and costly cars. The demand for such things is viewed as a status symbol. As their prices rise, purchasing them becomes more prestigious.
- Consumers may buy more of a commodity, even at higher prices, if they anticipate a shortage of that commodity in the near future.
- The law of demand does not apply to the necessities of life also.
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संबंधित प्रश्न
Briefly explain any two reasons for the occurrence of the law of demand.
Find the odd word
Assumptions to law of demand -
State with reason whether you agree or disagree with the following statement.
There is an inverse relationship between price and demand.
In case of relatively more elastic demand, the shape of the curve is
Distinguish between extension and contraction of demand.
Write a statement of the Law of Demand.
State with reason whether you agree or disagree with the following statement :
When price of Giffen goods fall, the demand for it increases.
The following table shows the demand schedule for 3 consumers in a market.
| Price in (Rs) | Consumer 1 Demand in (kgs) | Consumer 2 Demand in (kgs) | Consumer 3 Demand in (kgs) | Market Demand |
| 10 | 1 | 2 | (i) ______ | 6 |
| 8 | 2 | (ii) ______ | 4 | 9 |
| 6 | 3 | 4 | 5 | 12 |
| 4 | 4 | 5 | 6 | (iii) ______ |
Based on the above hypothetical schedule answer the following questions.
- What is the demand of Consumer 3 priced at Rs 10 (i)?
- What is the demand of Consumer 2 priced at Rs 8 (ii)?
- Calculate the total market demand priced at Rs 4 (iii).
- From the above given table examine the relationship between price and demand.
- Mention any one exception to the law of demand.
If with the rise in price of good Y, demand for good X rises, the two goods are:
When at a price of ₹ 5 per unit of a commodity, A’s demand is for 11 units, B’s demand is for 14 units and C’s demand is for 8 units (assuming that there are only three consumers in the market), the market demand is ______.
Giffen goods are richman's goods
What is meant by the income effect of a fall in the prices of a commodity?
The following table shows the amount of sugar bought by a household at different prices:
| Period | Price (₹ per kg) | Amount Bought (kg) |
| Jan. 2000 | ₹ 15 | 4 |
| Feb. 2000 | ₹ 16 | 5 |
Does the behaviour of household contradict the law of demand? Give reasons in support of your answer.
State whether the following statement is true or false. Give reasons.
The law of demand states a direct relationship between price and demand.
Which formula correctly expresses the factors that determine the demand for a commodity?
Why does the demand curve always slope downwards?
