Which of the following is/are constant along a demand curve? (1) Income of the consumers
(2) Price of related goods
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.
Similar Questions
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
The supply curve of a normal good is ____________ sloping. It depicts ___________ on the x-axis and ___________ on the y-axis.
The demand curve gives the quantity demanded by the consumer at each ____________.
Which of the following statements is INCORRECT in the context of demand function?
Marginal Product is defined as:
The cross elasticity of demand means responsiveness of the quantity demanded of a good to a change in:
In case of inferior goods, income elasticity of demand is _____________.
A perfectly elastic supply curve means:
i. A horizontal supply curve
ii. Price Elasticity of Supply = Infinity
The law of demand holds good when:
For normal goods, the demand curve has a/an ______ slope.
Important Questions from Demand analysis
Tea and coffee are _______ goods.
Sweezy's kinked demand curve model to explain the price and output determination relates to which type of market structure?
Arrange the following goods in the ascending order of the underlying income elasticity of demand.
(A) Necessities
(B) Inferior goods
(C) Normal goods
(D) Luxury goods
(E) Giffen goods
Choose the correct answer from the options given below:
The steps involved in development of a project are given below. Arrange them in proper sequence:
(A) Selection of business idea for a detailed analysis from the competing ideas
(B) Project installation and initiation
(C) Feasibility analysis
(D) Identification of investment opportunity
(E) Arrangements for financing
Choose the correct answer from the options given below:
Match List I with List II
List I
List II
A.
Snob effect
I.
If firms are disproportionately powerful, the market leader makes the first move and captures two-thirds of the market.
B.
Small-world model
II.
When some people demand a smaller quantity of a commodity as more people consume it, in order to be different and exclusive
C.
Stackelberg model
III.
Oligopolistic firms seek to maximise sales after an adequate rate of profit has been earned to satisfy stockholders.
D.
Sales maximisation model
IV.
Theory that a corporate giant can be made to operate as a small firm by linking well connected individuals from each level of the organisation to one another.
Choose the correct answer from the options given below:
