ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A supply curve that has shifted to the right
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A supply curve that has shifted to the left
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A demand curve that has shifted to the right
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A demand curve that has shifted to the left
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Detailed explanation-1: -Which of the following is likely to shift the demand curve for a normal good to the right? The answer is “B. An expectation of a shortage in the future.” If consumers believe that the product will be unavailable in the future, they will purchase more of it at every price today.
Detailed explanation-2: -Demand Curve Shifts Right 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.
Detailed explanation-3: -Income is not the only factor that causes a shift in demand. Other things that change demand include tastes and preferences, the composition or size of the population, the prices of related goods, and even expectations.
Detailed explanation-4: -The correct answer is b. As a general rule, an increase in supply shifts the supply curve to the right, while the opposite shifts the supply curve to the left.