Demand and Supply · UPSC CDS/OTA · Question 12 of 30

Demand and Supply – Question 12

Step-by-step solution. Demand and Supply for UPSC CDS/OTA.

Topic
Demand and Supply
Subject
General Studies
Difficulty
Medium
Solve Time
45–60 sec

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Q · Demand and SupplyMedium · 45s

Which of the following explains the downward slope of the demand curve? 1. Law of Diminishing Marginal Utility 2. Substitution Effect 3. Income Effect

TopicDemand and Supply
Question Typemultiple choice
DifficultyMedium
Marking+1 / −0.33
Test Duration30 min

Step-by-Step Solution

The complete worked solution.

Every step explained — no skipped algebra.

All three factors explain why the demand curve slopes downward.

Final Answer: Option D — 1, 2 and 3
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Demand and Supply Question 12 – UPSC CDS/OTA