ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a decrease in the salary’s of the population
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a change in popularity of the good
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a change in price of the good
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an increase in the price of a substitute good
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Detailed explanation-1: -Answer and Explanation: A change in the price of a good does not shift the demand curve. Instead, it causes a movement along the demand curve. A change in any other factors will shift the demand curve to the left or to the right.
Detailed explanation-2: -Shifts in the supply and demand curves are only caused by changes other than price changes. Price changes only cause a movement along the demand or supply curve. This is because at higher price levels a consumer will simply demand less quantity, so we move along the demand curve to a lower level of quantity.
Detailed explanation-3: -A change in demand means a shift in consumer desire to purchase a particular good or service, irrespective of a difference in its price. From the options given above, the price of the commodity does not cause a change in demand, option D is therefore correct.
Detailed explanation-4: -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.
Detailed explanation-5: -The price of related goods and consumer income do not directly affect the demand curve.