What do you mean by complements? Give examples of two goods which are complements of each other.

3

(a)

What is the relation between good x and good y in each case, if with a fall in price of x demand for good y (i) rises and (ii) falls? Give reason.

3

(a)

Differentiate between Normal Goods and Inferior Goods.

3

(a)

Differentiate between substitute goods and complementary goods.

3

(a)

Explain law of demand with the help of a demand schedule.

3

(a)

Under what conditions a consumer would like to demand more at a given level of price?

3

(a)

Differentiate between decrease in demand and contraction in demand (decrease in quantity demanded).

3

(a)

Explain the inverse relationship between the price of a commodity and its demand. 

3

(a)

A good is an 'inferior' good for one and at the same time a 'normal' good for another consumer. Do you agree? Explain.

3

(a)

Normally a household will not buy a second-hand scooter even if the price of scooter falls. How we get a downward sloping market demand curve for scooters?

3

(a)

What do you mean by an 'inferior good'? Give some examples.

3

(a)

Give the meaning of inferior good and explain the same with the help of an example.

3

(a)

Why does law of demand slope downward from left to right?

3

(a)

Why do household buy more at a lower price than at a higher price?

3

(a)

Explain the causes behind law of demand.

3

(a)