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Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsTheory of consumer behaviour2 Marks
Question
Does a fall in income have the same effect on demand for the given commodity?
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Answer

No, Fall in income does not have the same effect on demand for the given commodity.
  1. If the given commodity is a normal good, the fall in income will reduce the demand for the normal goods.
  2. If the given commodity is an inferior good, the fall in income will raise the demand for the inferior goods.
  3. If the given commodity is a necessity, the fall in income will not change the demand for the necessity of goods.

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