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Online Classes Hindi Mother Tongue (Native)
English Proficient
Spanish Basic
Korean Basic
Jamia senior secondary school 2025
12th
Okhla Noor Nagar, Delhi, India - 110025
Phone Verified
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Class Location
Online class via Zoom
Student's Home
Tutor's Home
Board
State
Preferred class strength
One on one/ Private Tutions, Group Classes
Subjects taught
EVS, Biology, English Literature, Geography, Hindi, History, Business and Management, Business Studies, Urdu, Hindi Language, Economics, English
Taught in School or College
No
Answered on 08/08/2025 Learn CBSE - Class 11/Economics
Ask a Question
Demand plays a very important role in influencing investment decisions in an economy. When the demand for goods and services increases, businesses see an opportunity to earn more profit. To meet the rising demand, they invest more in production — like buying machines, hiring workers, and setting up new factories. This is called increased investment.
On the other hand, if the demand for goods and services is low, businesses may cut down their investment because they fear losses. So, high demand encourages more investment, while low demand discourages it.
Also, if the commodity is a normal good, an increase in income increases its demand, leading to more investment. But if the commodity is an inferior good, an increase in income reduces its demand, which may reduce investment in its production.
So, overall, demand helps producers decide what to produce, how much to produce, and where to invest their money.
Ask a Question
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Class Location
Online class via Zoom
Student's Home
Tutor's Home
Board
State
Preferred class strength
One on one/ Private Tutions, Group Classes
Subjects taught
EVS, Biology, English Literature, Geography, Hindi, History, Business and Management, Business Studies, Urdu, Hindi Language, Economics, English
Taught in School or College
No
Answered on 08/08/2025 Learn CBSE - Class 11/Economics
Ask a Question
Demand plays a very important role in influencing investment decisions in an economy. When the demand for goods and services increases, businesses see an opportunity to earn more profit. To meet the rising demand, they invest more in production — like buying machines, hiring workers, and setting up new factories. This is called increased investment.
On the other hand, if the demand for goods and services is low, businesses may cut down their investment because they fear losses. So, high demand encourages more investment, while low demand discourages it.
Also, if the commodity is a normal good, an increase in income increases its demand, leading to more investment. But if the commodity is an inferior good, an increase in income reduces its demand, which may reduce investment in its production.
So, overall, demand helps producers decide what to produce, how much to produce, and where to invest their money.
Ask a Question
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