Method. Fix a set of prices for one notebook — say ₹120, ₹90, ₹60, ₹30 and ₹10 — and against each write, honestly, how many notebooks you would buy in a school year at that price and no other. Keep everything else constant: the same pocket money, the same number of subjects, the same quality of notebook. Then plot price on the y-axis and quantity on the x-axis and join the points.
What a good answer must contain: (i) quantity rising as price falls, never the reverse; (ii) a price at which you buy the most — usually the lowest price on your list; (iii) a price at which your quantity falls to zero, or to the bare minimum your school demands; and (iv) reasons drawn from the chapter — purchasing power, diminishing marginal utility, and substitutes.
Sample answer:
| Price of one notebook | Number I would buy in a year | My reason |
|---|---|---|
| ₹120 | 2 | Only for the two subjects that need a thick notebook; I would reuse old ones for the rest |
| ₹90 | 4 | Enough for the main subjects |
| ₹60 | 7 | One for every subject |
| ₹30 | 10 | One per subject plus rough work and a diary |
| ₹10 | 14 | I would keep spares and share with my cousin |
I would stop buying altogether at about ₹200 — my whole month's pocket money for one notebook
Fall in price ₹120 → ₹10 = ₹110 · Rise in quantity 2 → 14 = 12 notebooks
The three reasons behind the pattern, in the chapter's own terms:
- Purchasing power. My pocket money is fixed, so at ₹120 each I simply cannot afford many; at ₹10 the same money stretches much further.
- Diminishing marginal utility. The first notebook is essential, the twelfth is a spare I may never open — so I will only take it if it is very cheap.
- Substitutes. Above about ₹200 I would use loose sheets in a file, or write on both sides of old notebooks. When a substitute becomes relatively cheaper, demand shifts to it — exactly as the chapter says of tea and coffee.