Que 1. In December, the price of Christmas trees rises and the quantity of trees sold also rises. Is this a violation of the law of demand? Que 2. Giving reason, state the impact of each of following on demand curve of a normal good 'x' if.. ) Price of its complementary good falls. iNews reports claims that consumption of product X has harmful effect on human health. ii) Income of consumer increases. Que 3. Vinod belong to a middle income family who lives in a small city. The price of salt is Rs.10 per Kg. and his family price to Rs.15 per Kg. consumes 5 Kg of salt per annum. Now all the sellers of salt have raised their a) Would the Vinod's purchases of salt to be affected by the price increase? Why or Why not? b) In view of your answer what can you say about the price elasticity of demand for salt? c) Suppose the Vinod's income doubles, how would this affect the quantity of salt consumed by his family?
Que 1. In December, the price of Christmas trees rises and the quantity of trees sold also rises. Is this a violation of the law of demand? Que 2. Giving reason, state the impact of each of following on demand curve of a normal good 'x' if.. ) Price of its complementary good falls. iNews reports claims that consumption of product X has harmful effect on human health. ii) Income of consumer increases. Que 3. Vinod belong to a middle income family who lives in a small city. The price of salt is Rs.10 per Kg. and his family price to Rs.15 per Kg. consumes 5 Kg of salt per annum. Now all the sellers of salt have raised their a) Would the Vinod's purchases of salt to be affected by the price increase? Why or Why not? b) In view of your answer what can you say about the price elasticity of demand for salt? c) Suppose the Vinod's income doubles, how would this affect the quantity of salt consumed by his family?
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.2P
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Transcribed Image Text:Que 1. In December, the price of Christmas trees rises and the quantity of trees sold also rises.
Is this a violation of the law of demand?
Que 2. Giving reason, state the impact of each of following on demand curve of a normal good
'x' if..
) Price of its complementary good falls.
iNews reports claims that consumption of product X has harmful effect on human health.
ii) Income of consumer increases.
Que 3. Vinod belong to a middle income family who lives in a small city. The price of salt is Rs.10
per Kg. and his family
price to Rs.15 per Kg.
consumes 5 Kg of salt per annum. Now all the sellers of salt have raised their
a) Would the Vinod's purchases of salt to be affected by the price increase? Why or Why not?
b) In view of your answer what can you say about the price elasticity of demand for salt?
c) Suppose the Vinod's income doubles, how would this affect the quantity of salt consumed by his
family?
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