ECONOMICS Q&A
CHAPTER: Demand and Consumer Behaviour
1. What is demand?
Ans. At a fixed time and at a fixed price, the amount of commodity
the consumer ready to purchase is called demand in economics.
2. What are the factors that determine demand for the
commodity?
Ans. The following factors are the determinants of demand for the
commodity 1. Price of the commodity, 2. Income of the consumer,
3. Price of the related commodities. 4. Numbers of customer, 5.
Conception of the customer regarding future price, 6.
Demonstration effect, 7. Taste and liking of customer.
3. What is demonstration effect?
Ans. If the consumer purchase the commodity by seeing the
purchase of other consumer then it is called demonstration effect.
The demand for that product generally increases due to
demonstration effect.
4. What do you mean by complementary commodity?
Ans. The commodity which are used simultaneously is called
complementary commodities., for example petrol and car. In this
case the demand for car not only depends on the price of car but
also an the price of petrol.
5. What is law of demand?
Ans. Income of consumer, price of the related commodities, taste
and liking of the consumer remaining constant, the demand for any
commodity is decreased as the price of the commodity is increased
and the demand for the commodity is increased as the price of
commodity and the amount of demand of that commodity is called
law of demand.
, 6. Draw a demand curve for normal commodity. Why demand curve
is downward sloping?
Ans. At a fixed time, the different amount of demand of any
commodity at different price, the consumer want to purchase when
expressed in the graph paper is called demand curve. Demand curve
is downward sloping for normal commodity.
In the figure DD1 is the demand curve for normal
commodity which is downward sloping due to law of demand other
things remaining constant, the demand for the commodity is
decreased as price of the commodity is increased and the demand for
the commodity is increased as the price of the commodity decreased.
Price D
of
commodity
D1
O
Amount of demand
7. What is inferior goods?
Ans. Other things remaining constant, the good whose demand is
decreased due to increase in customer’s income is called inferior
goods.
8. what is meant by a demand function?
Ans. The functional relation of dependence between the demand for
the commodity and determinants of demand is demand function. For
example in any fixed time keeping the other determinants of demand
CHAPTER: Demand and Consumer Behaviour
1. What is demand?
Ans. At a fixed time and at a fixed price, the amount of commodity
the consumer ready to purchase is called demand in economics.
2. What are the factors that determine demand for the
commodity?
Ans. The following factors are the determinants of demand for the
commodity 1. Price of the commodity, 2. Income of the consumer,
3. Price of the related commodities. 4. Numbers of customer, 5.
Conception of the customer regarding future price, 6.
Demonstration effect, 7. Taste and liking of customer.
3. What is demonstration effect?
Ans. If the consumer purchase the commodity by seeing the
purchase of other consumer then it is called demonstration effect.
The demand for that product generally increases due to
demonstration effect.
4. What do you mean by complementary commodity?
Ans. The commodity which are used simultaneously is called
complementary commodities., for example petrol and car. In this
case the demand for car not only depends on the price of car but
also an the price of petrol.
5. What is law of demand?
Ans. Income of consumer, price of the related commodities, taste
and liking of the consumer remaining constant, the demand for any
commodity is decreased as the price of the commodity is increased
and the demand for the commodity is increased as the price of
commodity and the amount of demand of that commodity is called
law of demand.
, 6. Draw a demand curve for normal commodity. Why demand curve
is downward sloping?
Ans. At a fixed time, the different amount of demand of any
commodity at different price, the consumer want to purchase when
expressed in the graph paper is called demand curve. Demand curve
is downward sloping for normal commodity.
In the figure DD1 is the demand curve for normal
commodity which is downward sloping due to law of demand other
things remaining constant, the demand for the commodity is
decreased as price of the commodity is increased and the demand for
the commodity is increased as the price of the commodity decreased.
Price D
of
commodity
D1
O
Amount of demand
7. What is inferior goods?
Ans. Other things remaining constant, the good whose demand is
decreased due to increase in customer’s income is called inferior
goods.
8. what is meant by a demand function?
Ans. The functional relation of dependence between the demand for
the commodity and determinants of demand is demand function. For
example in any fixed time keeping the other determinants of demand
