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ICSE Class X Economics 2019 Papers

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Question : 11 of 40
Marks: +1, -0
If a buyer buys less of a commodity when his income falls, how will his demand curve change? Illustrate your answer with a diagram.
Solution:  
With fall in income, the demand for commodity decreases, in this sense the goods are normal as TV, refrigerator, cars etc.
In diagram, the demand falls from OQO Q to OQ1O Q_1 , at the same price. It shift the demand curve towards left from DDD D to D1D1D_1 D_1 .
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