All but one of the following are assumed to remain the same while drawing an individual's demand curve for a commodity. Which one is it?
A. The preferences of the individual
B. His monetary income
C. The price of the commodity under consideration
D. The prices of other goods
Answer: Option C
Solution(By Examveda Team)
Only price changes and all others like price of related goods, income, taste and preference remain constant, while drawing an individual's Demand curve for a commodity.Join The Discussion
Comments ( 6 )
The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Who propounded the opportunity cost theory of international trade?
A. Ricardo
B. Marshall
C. Heckscher & Ohlin
D. Haberler
Which among the following statement is INCORRECT?
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
A. Increase
B. Decrease
C. Remain the same
D. Become zero
Question statement is wrong , all but not one ....should be the statement
Only then option c will be the right ans
The law of demand assumes the prices of other commodities to remain constant (substitutes, complementary). If it considers the price of the commodity under consideration to be constant then while drawing the demand curve, it will parallel to the X-axis. (And that can have different interpretations). The answer given (Option C) is incorrect. Please look into this as this is one of the very basic theories of microeconomics.
As we know that price of the concerned commodity is the major determinant of the demand for the same commodity, then how come it remains same?
Why is it so?
how?
question should be "all but not one of the .................. " and then the given answer can be accepted as a correct answer.
isn't it ?