Day: November 8, 2017

Which of the following is not held constant when a demand curve is drawn?

Select ONE answer:

1. Consumer expenditure
2. Consumers’ money incomes
3. Consumers’ tastes
4. The price of the good itself
5. The prices of complementary goods

Explain and justify your answer through sketching and annotating a supply and demand curve diagram?

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This is multiple choice question is suitable for Economics KS5 classes.

The answer is 4 – This is a very straightforward question if you have a basic grasp of the topic. You are not given a diagram but sketching one for yourself will make the question easy. Sketch a demand curve. If you have done it correctly you have the price of the good up the vertical axis and the quantity demanded along the horizontal axis. The demand curve, then, shows the relationship between the price of the good and quantity demanded, all other things being held equal, or ceteris paribus as we sometimes say. As you lower the price you move along the curve and see the higher quantities now being demanded. The price of the good itself is varying as you do so. All other things affecting demand, including the factors described in 1, 2, 3 and 5 are held constant.

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