Question

Explain the determinants of market demand curve.

Solution

(i) Prices of related goods (substitute and complementary goods).
(ii) Distribution of income.
(iii) Tastes of consumers.
(iv) Size of the market (i.e. number of consumers in the market).

Some More Questions From Theory Of Consumer Behaviour Chapter

Why is MRS always diminishing?

When does a consumer attain equilibrium according to indifference curve approach?

Give meaning of demand.

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Theory Of Consumer Behaviour

Explain the determinants of market demand curve.

Some More Questions From Theory Of Consumer Behaviour Chapter

Why is MRS always diminishing?

When does a consumer attain equilibrium according to indifference curve approach?

Give meaning of demand.

Name two determinants of demand.

List the factors that cause changes in demand.

What is law of demand?

What is demand schedule?

Why does demand curve slope downwards?

Differentiate between substitute and complementary goods.

What is meant by one good being substitute of other?

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