Which of the following statements about a consumer’s demand curve is NOT correct?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → It is drawn holding the price of the good itself constant.
A demand curve shows how much the consumer buys at different prices of the good itself. What is held constant are the other things: prices of related goods, income and tastes.
Option (1) It is the graphical representation of the demand function. — True. The demand function drawn as a graph is the demand curve.
Option (2) It is drawn holding the price of the good itself constant. — False. The good’s own price is the very thing that varies along the curve.
Option (3) It is generally downward sloping. — True. Demand usually rises when price falls.
Option (4) Price, the independent variable, is measured along its vertical axis. — True. In economics, price goes on the vertical axis.
NCERT (2026-27): “Derivation of Demand Curve in the Case of a Single Commodity (Law of Diminishing Marginal Utility) … Demand curve is a graphic presentation of various quantities of a commodity that a consumer is willing to buy at different prices of the same commodity, while holding constant prices of other related commodities and income of the consumer.” “2.4.1 Demand Curve and the Law of Demand … The demand function can also be represented graphically as in Figure 2.13. The graphical representation of the demand function is called the demand curve. …” “… The demand curve, for example, is drawn by taking the independent variable (price) along the vertical axis and the dependent variable (quantity) along the horizontal axis. …” |