Which of the following factors affects individuals demand for a commodity ? 1. Price of the commodity 2. Income of the consumer 3. Prices of related goods Select the correct answer using the code given below :

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Q: 60 (CAPF/2014)

Which of the following factors affects individual’s demand for a commodity ?
1. Price of the commodity
2. Income of the consumer
3. Prices of related goods
Select the correct answer using the code given below :

question_subject: 

Economics

question_exam: 

CAPF

stats: 

0,237,27,20,6,237,1

keywords: 

{'commodity': [0, 0, 0, 1], 'factors': [0, 0, 1, 0], 'demand': [0, 0, 0, 3], 'related goods': [0, 0, 0, 1], 'consumer': [1, 2, 2, 5], 'income': [0, 3, 0, 0], 'prices': [0, 5, 4, 14]}

The correct answer is option 3: 1, 2 and 3.

Let`s analyze each option to understand why they do or do not affect an individual`s demand for a commodity:

1. Price of the commodity: The price of a commodity definitely affects the demand for it. Generally, when the price of a commodity increases, the demand for it decreases, and vice versa. People are more likely to buy a commodity when its price is lower, and less likely to buy it when the price is higher.

2. Income of the consumer: The income of a consumer also plays a crucial role in determining the demand for a commodity. When the income of a consumer increases, their purchasing power also increases, which in turn leads to an increase in demand for various goods and services, including commodities.

3. Prices of related goods: The prices of related goods can impact the demand for a particular commodity as well. Related goods can be substitutes (goods that can be used in place of each other) or complements (goods that are used together). When the price of a substitute good increases, the demand for the original commodity may increase as consumers switch to the substitute. Similarly, when the price of a complement good decreases, the demand for the original commodity may increase as