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JAMB Economics 1986 Question 14

Question 14

Theory of Demand

In drawing an individual's demand curve for a commodity, which of the following is NOT kept constant? The

  1. A.individual's money income
  2. B.price of substitutes
  3. C.price of complementary goods
  4. D.price of the commodity under consideration.
Show the answer and explanation

Answer: D (price of the commodity under consideration.)

Explanation

A demand curve shows how quantity demanded changes as the good's own price changes, while income and the prices of other goods are held constant.