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
If Coke and Fanta are close substitutes to each other, a rise in price of Coke will lead to ______ for Fanta.
Differentiate between extension and contraction of demand.
What does a downward movement along the same demand curve indicate?
In order to encourage tourism in Goa, Government of India suggests Indian Airlines to reduce air fares to Goa from four major cities: Chennai, Kolkata, Mumbai and New Delhi. If the Indian Airlines reduces the air fare to Goa, how will this affect the market demand curve for air travel to Goa?
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?
Explain the following diagram.
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.
