Class 11 Economics Important Chapter 3 Demand and Law of Demand

Class 11 Economics Important Chapter 3 Demand and Law of Demand Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Economics Important Solutions and select need one. AHSEC Class 11 Economics Additional Notes English Medium Download PDF. HS 1st Year Economics Important Solutions in English.

Class 11 Economics Important Chapter 3 Demand and Law of Demand

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. Assam AHSEC Board Class 11 Economics Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Economics Important Notes in English for All Chapters, You can practice these here.

Demand and Law of Demand

Chapter: 3

PART – A : MICROECONOMICS

IMPORTANT QUESTION AND ANSWER

Short Type Question and Answer:

1. What is meant by ‘effective demand’?

Ans: Effective demand is the desire for a commodity backed by purchasing power and willingness to spend.

2. How does utility affect demand?

Ans: A consumer demands a commodity only when it provides utility or satisfaction to them.

3. Give one example of substitute goods.

Ans: Tea and coffee.

4. Give one example of complementary goods.

Ans: Car and petrol.

5. What happens to the demand for normal goods when income increases?

Ans: Demand for normal goods increases when income increases.

6. What happens to the demand for inferior goods when income increases?

Ans: Demand for inferior goods decreases when income increases.

7. How does fashion influence demand?

Ans: Demand increases if a product is in fashion and decreases if it goes out of fashion.

8. How does population size affect market demand?

Ans: A larger population increases market demand, while a smaller population reduces it.

9. How does income distribution affect market demand?

Ans: Equal distribution of income raises overall demand, while unequal distribution limits it.

10. Give one example of a necessary good.

Ans: Salt.

11. Why does the demand curve slope downwards?

Ans: Because of the law of diminishing marginal utility, substitution effect, and income effect.

12. What is meant by ‘contraction of demand’?

Ans: Contraction of demand refers to a decrease in quantity demanded due to a rise in price.

13. What is meant by ‘expansion of demand’?

Ans: Expansion of demand refers to an increase in quantity demanded due to a fall in price.

14. Name one exception to the law of demand.

Ans: Giffen goods.

15. How does an increase in the price of a substitute good affect demand?

Ans: It increases the demand for the given good as it becomes relatively cheaper.