To draw the demand curve, the commuter's income must be held constant. If the commuter receives a raise at work, which of the following statements are true? Select all correct statements.

A. The ceteris paribus assumption is violated.

B. The demand curve may shift to a different place.

C. The quantity of gasoline consumed at each price may change.

D. The demand curve will become upward sloping.

Question

Danna Jacobs

Business

27 December, 03:00

To draw the demand curve, the commuter's income must be held constant. If the commuter receives a raise at work, which of the following statements are true? Select all correct statements.

A. The ceteris paribus assumption is violated.

B. The demand curve may shift to a different place.

C. The quantity of gasoline consumed at each price may change.

D. The demand curve will become upward sloping.

+2

Answers (1)

Know the Answer?

Livia Graves · Answer 1

The correct answer is option B.

Explanation:

The law of demand is based on the assumption of ceteris paribus or other things being constant. Other factors such as income are assumed to be constant and the relationship between quantity demanded and the price is studied.

If the income of commuter increase he/she will be able to afford more products. This will cause an increase in the demand for products. Consequently, the demand curve will move to the right.