Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Covid19 outbreak became a cause of concern when, WHO announced it as a pandemic. Soon, lockdown was seen all over the world. India also declared it's first lockdown in the month of March for 21 days, which was extended later. There were so many changes seen around us, which we never witnessed even at the time of war. As the news of lockdown spread in the country people rushed to markets in order to hoard groceries. Video clips of China were viral where people were fighting in front of grocery stores. Vendors were selling bread, biscuit at inflated price to the common man. The supply chain of goods were broken due to complete lockdown due to which prices rose drastically and the entire economy came to a standstill.

Which of the following would cause a change in the quantity demanded for a product?

Options:

Change in consumer tastes

Change in consumer income

Change in price of related products

Decrease in price of the product

Correct Answer:

Decrease in price of the product

Explanation:

Change in own price of the commodity cause movement along the demand curve which is also known as change in "Quantity demanded" of the product.