# ECONOMICS (CBSE/UGC NET)

## ECONOMICS

### DEMAND

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which is TRUE about the increase of demand?
 A shifts to the left B shifts to the right C shifts upward D none of the choices
Explanation:

Detailed explanation-1: -The curve shifts to the right if the determinant causes demand to increase. This means more of the good or service are demanded even though there’s no change in price. When the economy is booming, buyers’ incomes will rise. They’ll buy more of everything, even though the price hasn’t changed.

Detailed explanation-2: -Explanation: A rise in consumer’s income leads to an increase in the demand for the commodity hence, the demand curve will shift rightward. Suppose there are two commodities, A and B, the price of B rises which is the substitute of commodity A.

Detailed explanation-3: -A rise in the price of substitutes means that more of a good will be demanded. Thus, the demand curve will shift to the right.

Detailed explanation-4: -Increase in demand indicates a rightward shift in the demand curve.

Detailed explanation-5: -To sum up, if the income level of a population increases, the demand curve will shift to the right, since there is more quantity of demand at every price point. The opposite will happen if the income level drops. Now there will be less money to spend, and the demand curve will shift to the left.

There is 1 question to complete.