Question

Study the responsiveness of demand for commodities like salt matchboxes candle television food grains with respect to income level of five families introduction

Answer 1

The demand for salt will not increase or decrease with respect to the income of the families. Because if the price of salt reduces they will not consume it more or vice versa.

Same is the case with the commodities like matchboxes, candle and food grains. But there can be change in demand with the price fluctuations of television, because it is a luxury and not a necessity.

Answer 2

Let us consider the income level of the five families range from very low, low, moderate, high, very high.

• If a family has very low income, then the demand for salt, matchboxes and candles are going to be necessary. The food grains are also mandatory. But, television cannot be afforded.
• If a family has low income, the demand for food grains, salt, matchboxes and candles are going to be high. But, television won't be of much demand.
• If a family has moderate income, then they can afford food grains and salt with maximum demand. But, candles and matchboxes won't be of much demand. They can afford for a television.
• If a family has high income, the demand for food grains, salt and television can be afforded. But, not much demand for candles and matchboxes.
• If a family has very high income, they can afford everything irrespective of the demand. But, they won't be demanding matchboxes and candles.