ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
It shifts inward (to the left)
|
|
|
It remains the same
|
|
|
It shifts outwards (to the right)
|
|
|
There is movement along the curve such that the quantity demanded increases and the price decreases.
|
Detailed explanation-1: -One day, the government decides to impose regulation to increase all wages in the country by 10%. What happens to the demand curve of the market for cars? There is movement along the curve such that the quantity demanded increases and the price decreases.
Detailed explanation-2: -As we can see on the demand graph, there is an inverse relationship between price and quantity demanded. Economists call this the Law of Demand. If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases.
Detailed explanation-3: -Any change that increases the demand shifts the demand curve to the right and is called an increase in demand. 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-4: -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-5: -Factors that can shift the demand curve for goods and services, causing a different quantity to be demanded at any given price, include changes in tastes, population, income, prices of substitute or complement goods, and expectations about future conditions and prices.