Question
Market for a good is in equilibrium. There is 'decrease in demand for this good. Explain the chain of effects of this change. Use diagram.### Market for a good is in equilibrium. The demand for the good 'decreases'. Explain the chain of effects of this change.### Market of a good is in equilibrium. If the demand for the good decreases'. Explain the chain of effects of this change.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Similar questions

Calculate (a) national income (b) net national disposable income:
    Rs. in crores
(i) Net factor income to abroad (–) 50
(ii) Net indirect taxes 800
(iii) Net current transfers from rest of the world 100
(iv) Net imports 200
(v) Private final consumption expenditure 5000
(vi) Government final consumption expenditure 3000
(vii) Gross domestic capital formation 1000
(ix) Change in stock (–) 50
(x) Mixed income 4000
(xi) Scholarship to students 80
Calculate (a) net national product at market price, and (b) gross national disposable income:
    ₹  in crores
(i) Compensation of employees 250 
(ii)  Mixed income of self-employed 600
(iii) Profit 80
(iv) Rent 30
(v) Interest 40
(vi)  Net factor income to abroad (–) 10
(vii) Net exports 15
(viii)  Consumption of fixed capital 20
(ix) Net indirect taxes 10
(x) Net current transfers to abroad 8
The price elasticity of supply of commodity Y is half the price elasticity of supply of commodity X. 16 percent rise in the price X results in a 40 percent rise in its supply. If the price of Y falls by 8 percent, calculate the percentage fall in its supply.
What are the alternative definitions of money supply in India?
Distinguish between inferior good and normal good. Explain the effect of change in income on the demand curve of each good. Use diagram.

OR

Distinguish between normal goods and inferior goods, with examples.

Giving reason explain how should the following be treated in estimating gross domestic product at market price?
  1. Fees to a mechanic paid by a firm.
  2. Interest paid by an individual on a car loan taken from a bank.
  3. Expenditure on purchasing a car for use by a firm.
When the price of X doubles, its quantity demanded falls by 60 percent. Calculate its price elasticity of demand. What should be the percentage change in price so that its quantity demanded doubles?
How will a fall in price of tea affect the equilibrium price of coffee? Explain the chain of effects.
Good Y is a substitute of good X. The price of Y falls. Explain the chain of effects of this change in the market of X.