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What is the effect of unequal distribution of income on market demand of a commodity? Explain using a diagram. What is the implication of unequal distribution of income for the society?

Answer» <html><body><p></p>Solution :If there is unequal distribution of income, all sections of the society will not be able to <a href="https://interviewquestions.tuteehub.com/tag/demand-436956" style="font-weight:bold;" target="_blank" title="Click to know more about DEMAND">DEMAND</a> goods and <a href="https://interviewquestions.tuteehub.com/tag/services-1202745" style="font-weight:bold;" target="_blank" title="Click to know more about SERVICES">SERVICES</a>. Hence market demand of the commodity would fall and the demand <a href="https://interviewquestions.tuteehub.com/tag/curve-941741" style="font-weight:bold;" target="_blank" title="Click to know more about CURVE">CURVE</a> will shift <a href="https://interviewquestions.tuteehub.com/tag/leftwards-1071055" style="font-weight:bold;" target="_blank" title="Click to know more about LEFTWARDS">LEFTWARDS</a> from DD to `D_(2)D_(2)`. <br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/MIC_ECO_XI_U02_C03_E01_049_S01.png" width="80%"/> <br/> Unequal distribution of income implies inequality which is not socially <a href="https://interviewquestions.tuteehub.com/tag/desirable-431589" style="font-weight:bold;" target="_blank" title="Click to know more about DESIRABLE">DESIRABLE</a>. It is against social justive and reduces economic and social welfare</body></html>


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