ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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decrease in demand
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contraction in demand
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expansion in demand
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increase in quantity demanded
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Detailed explanation-1: -The curve shifts to the right if the determinant causes demand to increase. This means more of the good or service are demanded even though there’s no change in price.
Detailed explanation-2: -Quantity naturally also increases as it captures the rise in demand. If the demand curve shifts to the right, demand increases, leading to a higher equilibrium price. A shift to the right would result in a rise to the equilibrium, meaning higher prices.
Detailed explanation-3: -Increased demand means that at every given price, the quantity demanded is higher, so that the demand curve shifts to the right from D0 to D1. Decreased demand means that at every given price, the quantity demanded is lower, so that the demand curve shifts to the left from D0 to D2.
Detailed explanation-4: -A change in quantity demanded refers to a movement along a fixed demand curve–that’s caused by a change in price. A change in demand refers to a shift in the demand curve–that’s caused by one of the shifters: income, preferences, changes in the price of related goods and so on.
Detailed explanation-5: -If the AD curve shifts to the right, then the equilibrium quantity of output and the price level will rise. If the AD curve shifts to the left, then the equilibrium quantity of output and the price level will fall.