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Market Equilibrium — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMarket Equilibrium1 Mark
Question
In the case of luxury items like diamond, decrease in demand decreases equilibrium price. Do you agree?
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Answer

No, this is not correct. The price of luxury items like diamond does not fall even if there is a decrease in demand. These items indicate social status of rich class due to which the price remains high, irrespective of change in demand.

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