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Question

Which of the following is/are constant along a demand curve?

(1) Income of the consumers
(2) Price of related goods

This question was previously asked in
SSC CGL 2020 (Tier-2) Statistics Previous Year Paper 3 (28-Jan-2022)
The correct answer is

Both 1 and 2

While analyzing a demand curve, certain factors are held constant to isolate the effect of price on quantity demanded. These include:

  • Income of consumers: It is assumed to remain constant to measure only the effect of price.
  • Price of related goods: Also assumed constant to avoid substitution or complementary effects.

Therefore, both (1) and (2) are constant along a demand curve.

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Similar Questions

  1. The supply curve of cars is expected to shift rightwards with:

    i. An increase in the price of cars

    ii. A decrease in fuel prices

  2. The supply curve of a normal good is ____________ sloping. It depicts ___________  on the x-axis and ___________ on the y-axis.

  3. The demand curve gives the quantity demanded by the consumer at each ____________.

  4. Which of the following statements is INCORRECT in the context of demand function?

  5. Marginal Product is defined as:

  6. The cross elasticity of demand means responsiveness of the quantity demanded of a good to a change in:

  7. In case of inferior goods, income elasticity of demand is _____________.

  8. A perfectly elastic supply curve means:

    i. A horizontal supply curve

    ii. Price Elasticity of Supply = Infinity

  9. The law of demand holds good when:

  10. For normal goods, the demand curve has a/an ______ slope.


Important Questions from Demand analysis

  1. If the gross elasticity of demand is negative, the two products in consideration are __________ products.
  2. For a linear demand curve, which of the following is true ?
  3. In the above diagram, if curve IC represents income - consumption curve, then it means that :

  4. A consumer spends ₹ 240 when the price of the commodity is ₹ 15 and ₹ 300 when the price rises to ₹ 20. The elasticity of demand is :
  5. Which one of the following demands states consumers are adequately buying all the products put into the marketplace?

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