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Micro Economics

Notes 7. Explain the downward sloping shape of demand curve.

8. It was noticed that even though the price of salt went up, there was no fall in demand. Can
you explain, why?
9. Explain the income effect and substitution effect with help of suitable examples.
10. Draw a demand curve based on following data- Number of units demanded of X: 35, 46,
67, 89, 90 and 120 and respective prices: ` 40, ` 45, ` 50, ` 55, ` 60 and ` 65.

Answers: Self Assessment

1. False 2. False
3. True 4. True
5. True 6. False

7. Derived 8. Complementary
9. Need 10. Downward
11. Positive

2.9 Further Readings

Books Dr. Atmanand, Managerial Economics, Excel Books, Delhi.

G.S. Maddala, Microeconomics: Theory and Application, Tata McGraw-Hill
N. Gregory Mankiw, Principles of Microeconomics, Harcourt College Publications

Samuel Bowles, Microeconomics: Behavior, Institutions and Evolution, Oxford

Online links http://www.netmba.com/econ/micro/supply-demand/

http://www.basiceconomics.info/supply-and-demand.php
http://ingrimayne.com/econ/DemandSupply/OverviewSD.html
http://tutor2u.net/economics/revision-notes/as-markets-equilibrium-price.
html

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