Suppose there are 20 consumers for a good and they have identical demand functions:
(p) = 10 - 3p for any price less than \(\frac { 10 }{ 3 } \) and d₁(p) = 0 at any price greater than or equal to \(\frac { 10 }{ 3 } \) What is the 3 market demand function?

3

(a)

What do you mean by substitutes? Give examples of two goods which are substitutes of each other.

3

(a)

What do you mean by complements? Give examples of two goods which are complements of each other.

3

(a)

Does a fall in income have the same effect on demand for the given commodity?

3

(a)

Differentiate between Normal Goods and Inferior Goods.

3

(a)

Explain law of demand with the help of a demand schedule.

3

(a)

Differentiate between decrease in demand and contraction in demand (decrease in quantity demanded).

3

(a)

Law of Demand is a qualitative statement. Comment.

3

(a)

Give the meaning of inferior good and explain the same with the help of an example.

3

(a)

Why does law of demand slope downward from left to right?

3

(a)