Question

Mr. Krishnan purchases 1 litre of milk per day when it is priced at ₹ 35 per litre. On arrival of his guests, he purchases 8 litres of milk. Choose the correct impact on demand:

Options

• Increase in demand

• Increase in quantity demanded

• Decrease in demand

• Decrease in quantity demanded

Answer 1

Increase in demand

Explanation:

The rise in milk purchases is because guests have arrived, which represents a change in factors other than price, such as consumer needs or preferences. This results in an increase in demand, not merely an increase in quantity demanded, which happens only due to a change in price.