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प्रश्न
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.
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उत्तर
Yes, household behaviour defies the law of demand, which states that when prices rise, the quantity demanded falls and vice versa. There is a correlation between the price and quantity demanded for a good.
However, if sugar prices rise, so will demand. Thus, this occurs in exceptions to the law of demand or in the instance of the substitution effect, which states that if the price of a commodity rises, so does the demand for its substitute. Thus, it happens with normal goods as well, i.e., as consumer wealth rises, so does demand for normal goods, and sugar is a normal item. Thus, there are numerous arguments to support this answer.
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संबंधित प्रश्न
Find the odd word
Assumptions to law of demand -
The Law of Demand was introduced by ______.
The movement on or along the given demand curve is known as ______
In case of relatively more elastic demand, the shape of the curve is
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 ______.
If a good is inferior good, then purchases of that good will decrease when ______.
Pick the option which does not belong to the group:
What does the term "ceteris paribus" mean in relation to the Law of Demand?
Which formula correctly expresses the factors that determine the demand for a commodity?
