# ECONOMICS (CBSE/UGC NET)

## ECONOMICS

### DEMAND

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The demand curve for a normal good shifts leftward if income ____ or the expected future price ____
 A decreases; falls B increases; rises C increases; falls D decreases; rises
Explanation:

Detailed explanation-1: -If the income increases, the demand for the good decreases and if there is a decrease in income, there is an increase in the demand for the good.

Detailed explanation-2: -If income decreases or the price of a complement rises, The demand curve for a normal good shifts leftward.

Detailed explanation-3: -A leftward shift in the demand curve indicates a decrease in demand because consumers are purchasing fewer products for the same price.

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: -For a normal good, an increase in the consumer’s income causes an increase in the demand for the good. Hence, the demand curve for a normal good shift to the right as the consumer’s income increases and shifts to the left as the consumer’s income decreases.

There is 1 question to complete.