Demand for a commodity depends on factors such as
(i) Price of commodity itself
(ii) Income of the consumer
(iii) Tastes and preferences of the consumers
(iv) Prices of unrelated commodities
Choose correct option:
Answer & explanation
Correct answer: option 2
The correct answer is Option 2:i, ii, iii
Demand for a commodity depends on:
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(i) Price of the commodity itself: Correct. This is the most direct factor affecting quantity demanded (Law of Demand).
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(ii) Income of the consumer. Correct. Affects purchasing power and thus demand (normal vs inferior goods).
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(iii) Tastes and preferences of consumers. Correct. Changes in trends, fashion, and consumer preferences shift demand.
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(iv) Prices of unrelated commodities. Incorrect.
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These do not affect the demand for a given commodity.
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Only related goods (substitutes or complements) affect demand.
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