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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 preference of the individual.
- b)His monetary income.
- c)Price.
- d)Price of related goods.
Correct answer is 'C'. Can you explain this answer?
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Verified Answer
All but one of the following are assumed to remain the same while draw...
Only one i.e. price changes, all others like price of related goods, income, taste and preference remain constant, while drawing an individual’s Demand curve for a commodity
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All but one of the following are assumed to remain the same while draw...
Assumptions while drawing an individual's demand curve
There are certain assumptions that are made while drawing an individual's demand curve for a commodity. These assumptions are:
1. Preference of the individual - The preference of the individual for the commodity remains the same.
2. His monetary income - The monetary income of the individual remains the same.
3. Price of related goods - The price of related goods, such as substitutes and complements, remains the same.
4. Tastes and habits - The tastes and habits of the individual remain the same.
The Answer
The correct answer to the question is option 'C', which states that the price of the commodity remains the same while drawing an individual's demand curve.
Explanation
The demand curve is a graphical representation of the relationship between the price of a commodity and the quantity of that commodity demanded by an individual. It is drawn under the assumption that all other factors, except the price of the commodity, remain constant.
This means that the preference, income, tastes, and habits of the individual remain the same, and the price of related goods also remains constant. Hence, there is a movement along the demand curve only due to the change in the price of the commodity.
Therefore, the correct answer to the question is option 'C', which states that the price of the commodity remains the same while drawing an individual's demand curve.
There are certain assumptions that are made while drawing an individual's demand curve for a commodity. These assumptions are:
1. Preference of the individual - The preference of the individual for the commodity remains the same.
2. His monetary income - The monetary income of the individual remains the same.
3. Price of related goods - The price of related goods, such as substitutes and complements, remains the same.
4. Tastes and habits - The tastes and habits of the individual remain the same.
The Answer
The correct answer to the question is option 'C', which states that the price of the commodity remains the same while drawing an individual's demand curve.
Explanation
The demand curve is a graphical representation of the relationship between the price of a commodity and the quantity of that commodity demanded by an individual. It is drawn under the assumption that all other factors, except the price of the commodity, remain constant.
This means that the preference, income, tastes, and habits of the individual remain the same, and the price of related goods also remains constant. Hence, there is a movement along the demand curve only due to the change in the price of the commodity.
Therefore, the correct answer to the question is option 'C', which states that the price of the commodity remains the same while drawing an individual's demand curve.
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All but one of the following are assumed to remain the same while draw...
Change in demand and change in quantity demand achhe se padh lo sara doubt clear ho jayega
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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 preference of the individual.b)His monetary income.c)Price.d)Price of related goods.Correct answer is 'C'. Can you explain this answer?
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