What do you understand by the term "Demand curve"?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Demand curve is a graphical 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.
A demand curve shows how much of a good the consumer will buy at different prices of the same good. The other factors, prices of related goods and income, are held constant.
The other options either vary income or the prices of related goods along the curve, or let these change. A change in those factors shifts the curve instead.
NCERT (2026-27): “Derivation of Demand Curve in the Case of a Single Commodity (Law of Diminishing Marginal Utility) Cardinal utility analysis can be used to derive demand curve for a commodity. … The quantity of a commodity that a consumer is willing to buy and is able to afford, given prices of goods and income of the consumer, is called demand for that commodity. Demand for a commodity x, apart from the price of x itself, depends on factors such as prices of other commodities (see substitutes and complements 2.4.4), income of the consumer and tastes and preferences of the consumers. 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.” |