ECONOMICS (CBSE/UGC NET)

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ECONOMICS

DEMAND

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
If sandals suddenly became very popular, what would happen to the market for basketball shoes? This would cause the ____ curve for basketball shoes to shift ____
A
demand ____ right
B
demand ____ left
C
supply ____ right
D
supply ____ left
Explanation: 

Detailed explanation-1: -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-2: -Correct answer is (d): A change in the price of a good results in a movement along the demand curve for that good. When the price of a good x increases, the demand for that good contracts and when its price decreases, the demand for it increases.

Detailed explanation-3: -Therefore, if product A is inferior good, the demand of product A will reduce when money income increases and demand curve for product A will shift leftwards.

Detailed explanation-4: -An increase in demand shifts the demand curve rightward, and a decrease in supply shifts the supply curve leftward. 1.

There is 1 question to complete.
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