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One factor that causes a movement along the demand curve of a commodity
  • a)
    Fall in price of the good
  • b)
    Rise in income
  • c)
    Fall in the price of substitute goods
  • d)
    Rise in the price of complementary goods
Correct answer is option 'A'. Can you explain this answer?
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One factor that causes a movement along the demand curve of a commodit...
There is movement along a demand curve when a change in price causes the quantity demanded to change. It is important to distinguish between movement along a demand curve, and a shift in a demand curve. Movements along a demand curve happen only when the price of the good changes.
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One factor that causes a movement along the demand curve of a commodit...
Go through the topic of Change in demand and Change in Quantity demand...your all doubts be cleared.
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One factor that causes a movement along the demand curve of a commodit...
Factors causing a movement along the demand curve of a commodity:

1. Change in the Price of the Good
When the price of a commodity falls, the quantity demanded of that commodity increases, and vice versa. This is due to the law of demand, which states that there is an inverse relationship between price and quantity demanded.

2. Change in Income
When income rises, the demand for normal goods increases. This is because people have more money to spend, and they are more likely to purchase goods that they previously could not afford. Conversely, when income falls, the demand for normal goods decreases.

3. Change in the Price of Substitute Goods
When the price of a substitute good falls, the demand for the original good decreases. This is because consumers switch to the cheaper substitute, reducing the demand for the original good. Conversely, when the price of a substitute good rises, the demand for the original good increases.

4. Change in the Price of Complementary Goods
When the price of a complementary good rises, the demand for the original good decreases. This is because consumers are less likely to purchase the original good if they cannot afford the complementary good. Conversely, when the price of a complementary good falls, the demand for the original good increases.

Conclusion:
A movement along the demand curve is caused by a change in the price of the good itself. The other factors listed above may shift the entire demand curve, but they do not cause a movement along the curve.
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Read the following passage and answer the questions that follows:In economics, rationing is an artificial restriction of demand and is done to keep price below the equilibrium (market-clearing) price determined by the process of supply and demand in an unfettered market. Thus, rationing can be complementary to price controls which can be explained through indifference curve approach.There are two kinds of rationing done by the government to reduce consumption—price rationing and non-price rationing. By rationing, we mean exercise tax and by non-price rationing, we mean all types of control on the quantity consumed. Non-price rationing could be done by giving away coupons that would enable low income families to obtain some goods at affordable prices, which could not be possible if the prices were to increase alone. With coupon schemes, it would develop a black market for coupons, which would paradoxically increase the utility for those who are in need of that commodity by collection of more of these coupons from those who are not in need. This ensures greater marginal utility for those people who are in need of the commodity and will provide exchange of money to those who sell these coupons. For this, it is necessary for the government to encourage trading of the coupons.The major importance of introducing rationing is to keep the price of important commodities under control, as for a necessary commodity, there will be an excessive demand in the market which will drive their price up in the market and high prices leads to reduction of consumption and utility for those who could not afford it. This ensures that the resources are planned in favour of the poor people of the country and restricts the rich people to ensure excessive purchase of limited resources of the country. This ensures development and equality of welfare and utilitybetween the rich and the poor people. Rationing of the good is done by the government and not the private sector. There is the same limit put on every person on the budget spending to which people could buy the commodities and within the limit, one could buy any amount of the commodity.Q. The marginal utility derived from a commodity keeps on ..................... .

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One factor that causes a movement along the demand curve of a commoditya)Fall in price of the goodb)Rise in incomec)Fall in the price of substitute goodsd)Rise in the price of complementary goodsCorrect answer is option 'A'. Can you explain this answer?
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