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प्रश्न
How does change in the price of complementary good affect the demand for the given good? Explain with the help of an example.
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उत्तर
Demand for a commodity in relation to the price of the complementary good
Complementary goods are purchased jointly such as ink and ink pens.
Increase in price of the complementary good:
If there is an increase in the price of a good, then the demand for another good will decline. So the demand curve shifts parallel to the left, i.e. from D1D1 to D2D2
A decrease in the price of the complementary good:
If there is a decrease in the price of a good, then the demand for another good will increase. So the demand curve shifts parallel to the right, i.e. from D1D1 to D2D2.
संबंधित प्रश्न
Explain any two factors that affect the price elasticity of demand. Give suitable examples.
Explain the effect of the following on the price elasticity of demand of a commodity:
(i) Number of substitutes
(ii) Nature of the commodity
State whether the following statement is true or false :
Concept of ‘elasticity of demand’ is useful for the finance minister.
Choose the correct answer :
Perfectly elastic demand curve is _________.
Choose the correct answer :
Demand of labour is _______
Match the following:
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Group A
|
Group B
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1. Cars and petrol
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a. Elastic demand
|
|
2. Point method
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b. Complementary
|
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3. Necessary goods
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c. Geometric method
|
|
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d. Inelastic demand
|
State whether demand will be Elastic or Inelastic. Give reasons for your answer.
A consumer prefers to postpone the purchase of a car to avail more of year ending discount.
Elasticity of demand for two goods A and B is -2 and -3 respectively. Then good A has higher elasticity.
Assertion (A): The demand for soap, salt, matches etc. is highly elastic.
Reason (R): The demand for soap, salt, matches etc. is highly inelastic because the consumer spends a very small amount of expenditure in relation to his/her income.
Assertion (A): Demand for a commodity with large number of substitutes with be less elastic.
Reason (R): With large number of substitutes, even a small rise in its price will induce the buyers to go for its substitutes.
Explain briefly the factors on which elasticity of demand depends.
Comment upon the shape of the demand curve, if Ed = 0.
Discuss any three/ four factors determining price elasticity of demand.
Which of the following correctly describes the relationship between availability of substitutes and price elasticity of demand?
What type of demand characterizes necessity goods compared to luxury goods?
How does the time period affect the elasticity of demand?
