Theory of consumer behaviour — Economics STD 11 Commerce — Question
CBSE BoardEnglish MediumSTD 11 CommerceEconomicsTheory of consumer behaviour3 Marks
Question
Explain any three determinants of demand for a commodity for a household.
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Answer
The following factors affect the demand for a commodity by a household:
Price of the commodity. Generally when the price of a commodity goes up quantity demanded for it falls and when price falls its quantity demanded goes up.
Income of the consumer. Generally when the income of a consumer goes up, the demand for a commodity also goes up and when income falls, demand also falls for “normal” good, but in the case of “Inferior good”, its demand falls when the income rises and vice-versa.
Price of related goods (i.e. substitute and complementary goods). In case of complementary goods like car and petrol, the demand for a commodity rises with a fall in the price of complementary good. In case of substitute goods like tea and coffee, demand for a commodity falls with a fall in the price of the substitute good and vice-versa.
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