Distinguish between price demand, income demand, and cross demand.

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Solution

Price demand measures the ratio between proportionate change of quantity demanded of a good and proportionate change in price.
Income demand measures the ratio between proportionate change of income of the consumer and proportionate change in quantity demanded of a commodity.
Cross demand measures the ratio between proportionate change of quantity demanded of one good and proportionate change in price of another commodity.

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Similar questions

Explain the relationship between the following:

(i) Prices of other goods and demand for the given goods

(ii) Income of the buyers and demand for a good

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