Question

Explain with the help of diagram,the effect of an unfavorable change in taste of buyer on the demand of commodity

Answer 1

Answer:

Explanation:

The given figure illustrates this situation:

Answer 2

Demand of a commodity depends upon taste and preference of buyers when the price of commodity is constant.

If there is an unfavourable change in the taste and preference of buyers then the quantity of the commodity decreases as shown in the figure. Even if price is constant but taste of buyer changes in a negative way then the quantity of the commodity will decrease.

It means that the buyer would no longer be interested to buy the same commodity anymore. In this manner, the demand curve will shift backward and new quantity of the commodity will be OQ1 instead of OQ.