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Class 12 economics demand

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Economics Chapter - Demand Question 1. Suppose there are two consumers in the market for a good and their demand functions are as follows: for any price than less 20, and at any price greater than or equal to 20. for any price less than 15 and at any price greater than or equal to 15. Find out the market demand function. Answer: It can be seen from the given demand functions that Consumer 1 do not want to demand the goods for any price greater than or equal Rs.20 and consumer 2 do not want to demand the goods for any price greater than Rs 15. Hence, the market demand function will be, Question 2. Suppose there are 20 consumers for a good and they have identical demand function? Answer: Question 3. Answer: Question 4. What do you mean by a normal good?(or) when good is called ‘normal goods’? Answer: for normal good, with a raise in income, the demand of the commodity also rises and vice versa. Shortly direct relationship exists the income of a customer and demand of normal good. For example, a new car, new clothing. Question 5. What do you mean by an ‘inferior good’? Give some examples. Or Give the meaning of inferior good and explain the same with the help of an example. Answer: 1. A good is called ‘inferior goods’ when its demand falls with a rise in the income of a consumer and vice- versa. 2. For example, Jowar or Bajra for a poor person. 3. A good is inferior in a relative terms. It means, a good is inferior or normal is determined by the income level o ...
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