ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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sellers will produce less.
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buyers want to buy less.
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there is less of the product.
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there is more of the product.
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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: -Any change that reduces the quantity demanded at every price shifts the demand curve to the left and is called a decrease in demand.
Detailed explanation-3: -Changes in factors like average income and preferences can cause an entire demand curve to shift right or left. This causes a higher or lower quantity to be demanded at a given price.
Detailed explanation-4: -If the demand curve shifts farther to the left than does the supply curve, as shown in Panel (a) of Figure 3.19 “Simultaneous Decreases in Demand and Supply”, then the equilibrium price will be lower than it was before the curves shifted.
Detailed explanation-5: -When demand curve shifts right and supply curve to the left, the equilibrium price increases but the equilibrium quantity may increase, decrease or remain same, depending on the magnitude of shift in the two curves. Was this answer helpful?