ECONOMICS (CBSE/UGC NET)

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ECONOMICS

DEMAND

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Consumers used to love Outback, now they love Longhorn. Demand for Longhorn would ____ and the demand curve would shift ____
A
increase, right
B
increase, left
C
decrease, right
D
decrease, left
Explanation: 

Detailed explanation-1: -Increases in demand cause a shift to the right in the demand curve and are caused by some factors; a rise in income, a rise in the price of a substitute or a fall in the cost of a compliment.

Detailed explanation-2: -Increase in demand indicates a rightward shift in the demand curve.

Detailed explanation-3: -A product whose demand falls when income rises, and vice versa, is called an inferior good. In other words, when income increases, the demand curve for an inferior good shifts to the left.

Detailed explanation-4: -When there is an increase in number of consumers then there will be an increase in demand and the demand curve will shift towards the right thereby increasing the quantity demanded and price of the product.

There is 1 question to complete.
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