Question

WITH DIAGRAMS EXPLAIN THE EFFECT OF THE FOLLOWING CHANGES ON THE DEMAND CURVE ..
(1)DECREASE IN INCOME (2)CHANGE IN TASTE FOR ANOTHER COMMODITY. RISE IN THE PRICE OF COMPLEMENTARY

please answer me fast... ✨

Answer 1

i) An unfavourable change in taste of the buyer results in fall in demand for a commodity from Pa to Pb [Refer Fig. (a)].



(ii) A fall in income of the buyers of the inferior commodity, implies increase in its demand from Pa to Pb [Refer Fig. (b)].