ECONOMICS (CBSE/UGC NET)

ECONOMICS

DEMAND

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A new study has shown that avocados are extremely healthy. The demand for avocados has increased due to a change in
A
Market size
B
Price of a substitute good
C
Price of a complementary good
D
Tastes and preferences
Explanation: 

Detailed explanation-1: -The popularity of fresh avocados among consumers can be attributed to the growing consumption of fresh foods and easy product availability. The high fiber content of fresh form helps with digestion, prevents constipation, maintains the health of the gastrointestinal tract, and reduces the risk of colon cancer.

Detailed explanation-2: -Consider the demand for avocados. Does an increase in average income cause a shift of the demand curve for avocados or a movement along the demand curve?-a shift of the avocado demand curve because only a change in the price of avocados causes a movement along the avocado demand curve.

Detailed explanation-3: -The correct answer is C. A change in the price of a good does not shift the demand curve. Instead, it causes a movement along the demand curve. A change in any other factors will shift the demand curve to the left or to the right.

Detailed explanation-4: -The demand for a normal good increases if income increases. The demand for an inferior good decreases if income increases. Expected future income and expected future prices influence demand today. For example, if the price of a computer is expected to fall next month, the demand for computers today decreases.

There is 1 question to complete.