ICSE Class X Economics 2019 Solved Papers

Question : 11

Total: 40

If a buyer buys less of a commodity when his income falls, how will his demand curve change? Illustrate your answer with a diagram.

Solution:

With fall in income, the demand for commodity decreases, in this sense the goods are normal as TV, refrigerator, cars etc.

In diagram, the demand falls from OQ to OQ1 , at the same price. It shift the demand curve towards left from DD to D1D1 .

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