ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Your market campaign was a success
|
|
|
The supplies become more expensive
|
|
|
The economy is experiencing a recession
|
|
|
The price increases
|
Detailed explanation-1: -If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.
Detailed explanation-2: -A change in quantity demanded refers to a change in the specific quantity of a product that buyers are willing and able to buy. This change in quantity demanded is caused by a change in the price.
Detailed explanation-3: -The increase in demand causes excess demand to develop at the initial price. a. Excess demand will cause the price to rise, and as price rises producers are willing to sell more, thereby increasing output.
Detailed explanation-4: -A rightward shift in demand would increase the quantity demanded at all prices compared to the original demand curve. For example, at a price of $40, the quantity demanded would increase from 40 units to 60 units. A helpful hint to remember that more demand shifts the demand curve to the right.
Detailed explanation-5: -When quantity demanded increases in response to a change in price implies: there is a movement from one point to another along the demand curve.