Consider the following statements. 1. Demand is always related to price and time. 2. Individual demand is the sum total of individual demand function. 3. Demand is desire/want back of money. Which of the statement(s) given above is/are correct?

Both 1 and 2
Only 1
Only 2
All of the above

The correct answer is: Both 1 and 2

Statement 1 is correct because demand is a relationship between the price of a good and the quantity demanded of that good. The quantity demanded is the amount of a good that consumers are willing and able to purchase at a given price. The law of demand states that, all other things being equal, the quantity demanded of a good will decrease as the price of the good increases.

Statement 2 is also correct because individual demand is the demand for a good by a single consumer. The individual demand curve shows the relationship between the price of a good and the quantity demanded of that good by a single consumer. The individual demand curve is downward-sloping because, all other things being equal, consumers will demand more of a good as the price of the good decreases.

Statement 3 is incorrect because demand is not the desire/want back of money. Demand is the willingness and ability to purchase a good at a given price.