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Question : Which of the following are the causes of a fall in demand?
(a) Fall in Income
(b) Fall in Number of Buyers
(c) Fall in Taste of Consumer

Option 1: A only

Option 2: B only

Option 3: A and B only

Option 4: All of the above


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 8th Jan, 2024

Correct Answer: All of the above


Solution : A decrease in demand may occur due to the following reasons:
(i) A product has fallen out of favor, or people's preferences for a commodity have shifted. (ii) Consumer income has decreased.
(iii) The prices of the commodity's substitutes have decreased.
(iv) People's proclivity to consume has decreased.
(v) Fall in Taste of Consumer.
Hence d is the correct answer.

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