InterviewSolution
Saved Bookmarks
| 1. |
Categorise the following changes as expansion, contraction, increase or decrease in demand (assuming the given commodity is a normal good) : (i) When prices of a substitude rises (ii) When price of the given commodity increases (iii) When income of the consumers increases (iv) When price of the given commodity is expected to fall in further (v) When the given commodity becomes a fashion good (vi) When there is sudden decrease in population due to an earthquake (vii) When the price of the given commodity falls. |
| Answer» Expansion in demand : (vii) , Contraction in demand (ii) , Increase in demand (i),(iii),(v) , Decrease in demand (iv),(vi). | |