{"id":1693,"date":"2024-03-28T19:02:13","date_gmt":"2024-03-28T13:32:13","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1693"},"modified":"2024-04-03T07:17:44","modified_gmt":"2024-04-03T01:47:44","slug":"q-consider-the-following-statements-62","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-consider-the-following-statements-62","title":{"rendered":"Q.\u00a0Consider the following statements"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Other things remaining unchanged,&nbsp;<strong>market demand for a good might increase<\/strong>&nbsp;if<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">1. Price of its substitute increases<br>2. Price of its complement increases<br>3. The good is an inferior good and income of the consumers increases<br>4. Its price falls<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Which of the above statements are correct?<\/p>\n\n\n\n<ul class=\"mcq wp-block-list\">\n<li>1 and 4 only<\/li>\n\n\n\n<li>2, 3 and 4<\/li>\n\n\n\n<li>1, 3 and 4<\/li>\n\n\n\n<li>1, 2 and 3<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer: a) 1 and 4 only<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"notes-hd-660526bf0fe42\">Notes:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>T<strong>he main&nbsp;factors that can increase the&nbsp;demand&nbsp;for a good in market&nbsp;are:&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>Prices of related goods&nbsp;<\/li>\n\n\n\n<li>Income&nbsp;<\/li>\n\n\n\n<li>Expectations&nbsp;&nbsp;<\/li>\n\n\n\n<li>Number of buyers&nbsp;&nbsp;<\/li>\n\n\n\n<li>Preferences&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The following are the\u00a0<strong>relations between the demand and price of the products<\/strong>, with changing economic conditions:\n<ul class=\"wp-block-list\">\n<li>The\u00a0<strong>demand for a good increase, if the price of one of its substitutes rises<\/strong>. The demand for a good decrease, if the price of one of its substitutes falls.\n<ul class=\"wp-block-list\">\n<li>A&nbsp;<strong>substitute<\/strong>&nbsp;is a good or service that&nbsp;<strong>can be used in place of another good or service.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The\u00a0<strong>demand for a good increase, if the price of one of its&nbsp;complement\u2019s falls<\/strong>. For example, ice cream and fudge sauce.\n<ul class=\"wp-block-list\">\n<li>Complementary goods are\u00a0<strong>two or more goods typically consumed or used together<\/strong>, such that a change in the price or availability of one good affects the demand for the other good.\n<ul class=\"wp-block-list\">\n<li>Examples of complementary goods include hot dogs and hot dog buns, smartphones and protective cases, printer and ink cartridges, cereal and milk, and laptops and laptop cases.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The demand for an&nbsp;<strong>inferior good decrease if income increases<\/strong>.&nbsp;The demand for a normal good increase if income increases.&nbsp;<\/li>\n\n\n\n<li>If the Price of the good falls, then its demand increases.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Normal and inferior goods<\/strong>:\n<ul class=\"wp-block-list\">\n<li>A\u00a0<strong>product whose demand rises when income rises<\/strong>, and vice versa, is called a\u00a0<strong>normal good<\/strong>.\n<ul class=\"wp-block-list\">\n<li>A few exceptions to this pattern do exist, though. As incomes rise, many people will buy fewer generic-brand groceries and more name-brand groceries. They are less likely to buy used cars and more likely to buy new cars. They will be less likely to rent an apartment and more likely to own a home, and so on.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>A&nbsp;<strong>product whose demand falls when income rises<\/strong>, and vice versa, is called an&nbsp;<strong>inferior good<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Other things remaining unchanged,&nbsp;market demand for a good might increase&nbsp;if 1. Price of its substitute increases2. Price of its complement increases3. The good is an inferior good and income of the consumers increases4. Its price falls Which of the above statements are correct? Answer: a) 1 and 4 only Notes:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[52],"class_list":["post-1693","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-52"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":52,"label":"2021"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1693"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1693\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1693"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}