NAME-SASMIT PATIL

DIV-A
PRN-1182200068

QUESTION-1

1-Is custom and tradition an important determinant as a factor affecting demand?

ANS- CUSTOM AND TRADITION IN DEMAND-Custom and tradition can be an important factor
in demand and supply because custom is a long-running process that has been followed for
many years. For example, if you live in a village, the demand for expensive and luxurious items
will be lower in that area because people's traditional living standards are simple, but if you
compare that to a modern city, the demand for expensive and luxurious items will be higher in
the city.

2-What are the other factors that affect purchase of gold?

ANS- FACTORS THAT AFFECT DEMAND AND SUPPLY OF GOLD -:
● DEMAND- When there is a rise in demand for gold, the price increases, and vice versa.
Gold is one commodity that is continuously in demand. Demand and supply play a major
role in pricing of gold.
● INTEREST RATE-Both gold and interest rates have an inverse relationship. When the
interest rates increase, people sell off their gold and use the money to earn high interest.
When the interest rates decrease, people buy more gold resulting in increase in
demand.
● IMPORT DUTY-As gold is not produced in India, it is important for consumption from
other countries and import duty plays a crucial role in price fluctuation

3-What are substitute goods? Can Platinum occupy a role for becoming the substitute of gold?
● ANS- SUBSTITUTE GOODS-A substitute good does not have to be a tangible item it
may be a service. It is a product or service that is substituted for another. When the price
of gold rises, for example, more customers may go for Platinum or Silver
● A substitute good is a product that is similar to another and may be used in its place. To
put it another way, it's comparable enough to be utilised for the same purpose.
● CAN PLATINUM BE A SUBSTITUTE FOR GOLD-As previously said, as the price of
gold increased, the price of platinum declined. This is a clear example of a substitute
good, and it can be shown that it may be a great replacement for gold.

QUESTION 2

1-What will be the demand curve for Breezer Company?

ANS-Increases in demand are shown by a shift to the right in the demand curve. This could be
caused by a number of factors, including a rise in income, a rise in the price of a substitute or a
fall in the price of a complement.

2-Draw the demand curve of Breezer Company

ANS-
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3-How does Breezer lead as a leader portfolio?

ANS-
● A portfolio is a collection of various assets owned by investors. Gold, stocks, money,
derivatives, property, cash equivalents, bonds, and other valuables may be included in
the aforementioned collection of financial assets. Individuals invest in such assets in
order to create revenue while preserving the asset's or capital's original equity.
● QUALITY AS A LEADER-It helps to cushion investment-oriented risks and increases the
scope of generating more profits.
● Helps to develop sound strategies and rebalance asset composition as per their current
market condition so that investors can make the most of existing investment.