Q3 of 30 Page 1

When does ‘increase’ in demand take place?

An increase in the demand takes place when there is a change in the factors except the own price of the good. It involves an increasing income, changing taste and goods preferences. In diagram, it is portrayed in the demand curve as a forward shift.


More from this chapter

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1

What is the relation between marginal and average variable cost when marginal cost is rising and average variable cost is falling?

 2

Suppose the total revenue is rising at a constant rate as more and more units of a commodity are sold, marginal revenue would be:

(Choose the correct alternative)


 4

‘Homogeneous products’ is a characteristic of: (choose a correct alternative)

 5

There is inverse relation between price and demand for the product of a firm under: (choose a correct alternative)