Advertisements
Advertisements
Question
As a result of rise in consumer's income, the demand curve for coarse-grain (inferior good) will:
Options
Move upward along the same demand curve.
Move downward along the same demand curve.
The demand curve will shift to the right.
The demand curve will shift to the left.
Advertisements
Solution
The demand curve will shift to the left.
APPEARS IN
RELATED QUESTIONS
Differentiate between extension and contraction of demand.
What is an expansion of demand?
Define decrease in demand.
Distinguish between “movement along the demand curve” and shift of a demand curve.
What is meant by an increase in demand?
What causes a downward movement along a demand curve?
What does a rightward shift of demand curve indicate?
The following table shows a change in the demand. Read the table carefully and answer the question that follows:
| Case I | Case II | ||
| Price (₹) | Quantity | Price (₹) | Quantity |
| 10 | 20 | 10 | 20 |
| 10 | 10 | 5 | 20 |
What type of change is it, decrease in demand or contraction in demand? Give a reason.
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.
State whether the following statement is true or false. Give reasons.
Contraction of demand is the result of a decrease in the number of consumers.
