ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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movement up and to the left along the demand curve.
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movement down and to the right along the demand curve.
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leftward shift of the demand curve.
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rightward shift of the demand curve
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Detailed explanation-1: -Answer and Explanation: This option is correct because when quantity demanded decreases in response to a change in price, there must be an upward movement along the demand curve. It means as price rises, leading to a reduction in the quantity demanded, there is upward and leftward movement along the curve.
Detailed explanation-2: -A movement along the demand curve occurs when there is a change in price. This may occur because of a change in demand conditions. The factors affecting demand are assumed to be held constant. A change in price leads to a movement along the demand curve and it referred to as a change in quantity demanded.
Detailed explanation-3: -Economists call this the Law of Demand. If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand.
Detailed explanation-4: -A decrease in demand is represented by a shift of the demand curve to the left.
Detailed explanation-5: -The demand curve will move downward from the left to the right, which expresses the law of demand-as the price of a given commodity increases, the quantity demanded decreases, all else being equal. Note that this formulation implies that price is the independent variable, and quantity the dependent variable.