ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve.

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: -Answer: Movement of the demand curve happens when all other factors affecting the quantity demanded, remain constant and only the price changes. Hence, the demand moves upward or downward along the same curve.

Detailed explanation-4: -Expansion in demand. A fall in price from $16 to $12 leads to an expansion (increase) in demand. As price falls, there is a movement along the demand curve and more is bought. A change in price doesn’t shift the demand curve – we merely move from one point of the demand curve to another.

Detailed explanation-5: -A change in the price of the product causes a movement along the demand and supply curve.