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Exercises · Q5

Q.By long-standing convention in Economics, when drawing a demand-and-supply diagram, which variable is plotted on the X-axis?

(a) Price
(b) Quantity
(c) Income
(d) Time
Gujarat GsebTextbookSubjectiveImportance★★★★★
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✓ Free question

In ordinary mathematics, the independent variable goes on the X-axis. In Economics, however, demand-and-supply diagrams follow a special, long-standing convention (traced to Alfred Marshall): Price is always plotted on the Y-axis and Quantity on the X-axis, even though price is usually treated as the variable that determines the quantity demanded or supplied.

  • Option (a) Price — incorrect; price is plotted on the Y-axis, not the X-axis.
  • Option (b) Quantity — correct, by the Marshallian convention explained above.
  • Option (c) Income — incorrect; income does not appear on either axis of a basic demand-and-supply diagram (a change in income instead shifts the whole demand curve — Section 8).
  • Option (d) Time — incorrect; time is the axis variable for a line graph/trend, not for a demand-and-supply diagram.
✓Final answer

(b) Quantity.

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