ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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there is an upward movement along the demand curve for the good
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there is a downward movement along the demand curve for the good.
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the demand curve for a normal good shifts leftward
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the demand curve for a normal good shifts rightward.
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Detailed explanation-1: -With the rise in the income, people will demand more of it thus its (demand) curve will shift to the right. Also, with the fall in the price of its complement (those commodities that are used together), the demand will rise and its curve will shift to the right. the demand curve for a normal good shifts leftward .
Detailed explanation-2: -If income decreases or the price of a complement rises, A) there is an upward movement along the demand curve for the good.
Detailed explanation-3: -The demand for a good increases, if the price of one of its complements falls.
Detailed explanation-4: -The demand curve shifts to the left if the determinant causes demand to drop. That means less of the good or service is demanded. That happens during a recession when buyers’ incomes drop. They will buy less of everything, even though the price is the same.
Detailed explanation-5: -When the price of complementary goods decreases, the demand curve will shift outwards. Alternatively, if the price of complementary goods increases, the curve will shift inwards. The opposite is true for substitute goods.