ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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shifts the good’s demand curve but does not cause a movement along it.
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does not shift the good’s demand curve but does cause a movement along it.
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shifts the good’s demand curve and also causes a movement along it
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neither shifts the good’s demand curve nor causes a movement along it.
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Detailed explanation-1: -A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve. The graph on the left lists events that could lead to increased demand.
Detailed explanation-2: -Shifts in the supply and demand curves are only caused by changes other than price changes. Price changes only cause a movement along the demand or supply curve. This is because at higher price levels a consumer will simply demand less quantity, so we move along the demand curve to a lower level of quantity.
Detailed explanation-3: -Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods, and expectations about future conditions and prices.
Detailed explanation-4: -Movement along the Demand Curve happens because of the change in the price of commodities. This further affects the quantity Demanded. All other factors remain unchanged. Under such a scenario, the graph moves along the Y-axis, as the price is plotted against it.
Detailed explanation-5: -Answer and Explanation: A change in the price of a good does not shift the demand curve. Instead, it causes a movement along the demand curve.