Question

Study the responsiveness of demand for commodities like salt, matchbox, candles, television, food grains with respect to income level of five families
Full project needed

Answer 1

Answer:

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.

Hope it helps u !