Demand for a commodity depends on factors such as:
(A) Price of the commodity itself
(B) Income of the consumer
(C) Tastes and preferences of the consumers
(D) Prices of unrelated commodities
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
Demand for a good depends on its own price and on the ‘other things’: income, prices of related goods, and tastes.
(A) Price of the commodity itself — Correct. When own price changes, the quantity demanded changes, along the demand curve.
(B) Income of the consumer — Correct. A change in income shifts the demand curve.
(C) Tastes and preferences of the consumers — Correct. A favourable change in tastes raises demand at every price.
(D) Prices of unrelated commodities — Incorrect. Only the prices of related goods, substitutes and complements, affect demand. The price of an unrelated good has no effect.
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. …” “2.4.4 Substitutes and Complements We can also study the relation between the quantity of a good that a consumer chooses and the price of a related good. …” |