Question

The demand curve for a commodity is generally drawn on the assumption that ______.

Options

• Prices of substitute goods do not change

• Tastes and preferences of the consumer remain the same

• Income of the consumer remains the same

• All of these

Answer 1

The demand curve for a commodity is generally drawn on the assumption that Prices of substitute goods do not change, Tastes and preferences of the consumer remain the same and Income of the consumer remains the same.

Explanation:

A demand curve isolates the relationship between a good’s own price and quantity demanded. Other relevant factors, including income, preferences and substitute prices, are held constant.