Question

Which of the following is held constant along the demand curve?

    a. price of the good

    b. quantity

    c. income

    d. both a and b

.

Answer 1

As we know that the demand curve represents the relationship between the prices and quantity demanded of goods at these price levels.

So, Demand curve is the locus of points having different combinations of prices with the respective quantity demanded at that price.

So, We have various prices and quantity combinations along the demand curve. While we assume the tastes of consumers, Income, price of other goods etc. to stay constant. If these variables varies then they may alter the quantity demanded at the given price and will lead to the shift of demand curve.

Hence, Along the demand curve Price and quantity will vary while the Income will stay constant.

So, Income will be held constant along the demand curve.

• Option c. Income is correct