Question

Give two reasons which make a consumer buy less of a commodity at the same price.
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Answer 1

Explanation:

When other factors affecting the demand of a commodity other than the price changes, a consumer may buy less of the commodity. For example, a fall in income of the consumer in case of a normal good.

Answer 2

Answer:

Law of demand states that at lower commodity prices more of the commodity will be purchased in the market because of the following reasons:

a) more consumers buy the commodity at lower prices than at higher prices

b) Substitution effect: consumers substitute this commodity for others in consumption

c) Income effect: at lower prices, consumers purchase more of the commodity with given money income