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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?
With the help of a graph explain the increase in demand concept.
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Define decrease in demand.
Explain the following diagram:
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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?
With the help of a suitable diagram, distinguish between a change in quantity demanded and a change in demand.
Define contraction of demand (or decrease in quantity demanded).
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