Padhle is a World Best Education Site In India. We Provides Many Papers Solution On My Site. There is an inverse relationship between the price of the
commodity and the quantity demanded. It implies that lower the price of the commodity and the quantity demanded. It implies that lower the price of the
commodity higher is the quantity demanded and higher the price lesser is the quantity purchased. This type of demand is known as Price demand.
Price of related goods
Related goods can be categorized into substitutes and compliments.
They are those goods which satisfy the same type of demand and hence can be used in place of one another. Demand for a particular commodity
is influenced by fall or rise in the price of its substitute. For example, if price of Pepsi increases the demand of Coca Cola will automatically
increase.Get all types papers for exam preparing go and visit my site padhle..
They are those goods which are used together to satisfy a given want. A rise in price of commodity leads to fall in the demand of other commodity
also. For example, if price of petrol goes up, demand for its complementary good i.e. car will also fall.World best education preparing site in all
Income of the consumer
Generally, with the increase in income of the consumer the demand increases and with the fall in income of the commodity the demand decreases.
There are 3 types of commodities viz. normal, inferior and inexpensive necessities of life.World Best Online Aptitude Test Available Here.
They are those goods the demand for which increases with increase in income of the consumers and decreases when income falls. For eg. a
consumer may increase his demand for clothes, refrigerators, television sets and cars as his income increases.Get All Types Placement Papers.
They are those the demand for which falls with increase in income of the consumer. So, there is an inverse relationship between income
of the consumer and the demand for inferior goods. For eg. the demand for an inferior food like maize may decrease when income increases beyond
a particular level because the consumers may substitute it buy a superior and more attractive food like wheat or rice.Get Online Quiz Available
Inexpensive goods of necessities
In case of life such as salt and match box, quantity purchases with increase in income upto a certain level and thereafter it remains
constant irrespective of the level of income.
Tastes and preferences of the consumer
Tastes and preferences of the consumers depend on social customs, habits of the people, fashion, the general lifestyle of the people.
Some of these factors like fashion keep on changing leading to change in consumers tastes and preferences. As a result, the
demand for the different goods change. As a consequence, people switch over from the cheaper old fashioned goods over to costlier 'mod'
goods. For example, if black and white T.V sets has gone out of fashion, its demand has fallen.Get Any Types Previous Years Questions
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