When the price of a commodity falls, its demand increases. State true or false.

True

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False

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Solution

The correct option is B
False

As the price of a good falls, its quantity demanded increases. It corresponds to movement along the demand curve. A change in demand refers to a shift of the demand curve itself. Hence, the two are separate.

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If we expect a rise in price in near future of a commodity, then demand will increase. State true or false.

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