Question 38 of 39
Q.State with reasons whether you agree or disagree with the following statement:
Many factors influence the demand for a commodity.
(a) Agree
(b) Disagree
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2020MCQ· 4mImportance★★★★★
97% · 38/39 Questions
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Start your 14-day free trial to unlock the full solution →Agree — demand depends on price plus income, related-goods' prices, tastes, expectations and population.
Stand: Agree. The demand for a commodity is determined by many factors (the demand function):
- Price of the commodity — normally, demand falls as price rises (law of demand).
- Income of the consumer — higher income raises demand for normal goods, lowers it for inferior goods.
- Prices of related goods — demand depends on the prices of substitutes (tea/coffee) and complements (car/petrol).
- Tastes, preferences and fashion — changes in liking, habit and fashion change demand.
- Expectations of future prices — expected price rise increases present demand.
- Size and composition of population — more people (or a favourable age structure) means more demand. …
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