ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a change in population size
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a change in the price of ice cream
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a change in seasons from hot to cold weather
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a change in consumer preference
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a change in consumers incomes
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Detailed explanation-1: -The correct answer is b. a decrease in the price of ice cream. A decrease in the price of ice cream will not cause a change in demand. A decrease in demand will simply cause the demand to move to a new point on the same curve as opposed to the demand curve shifting.
Detailed explanation-2: -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-3: -Which of the following would cause the demand curve for ice cream to shift to the right? A reduction in the cost of producing ice cream.
Detailed explanation-4: -Hot weather affects the demand curve bychanging people’s taste for ice cream. That is, the weather changes the amount of ice creamthat people want to buy at any given price.
Detailed explanation-5: -Demand for Ice Cream Prices of related goods–frozen yogurt is a substitute for ice cream, so when its price goes up, more ice cream is demanded. Hot fudge is a complement for ice cream, so when its price goes up, less ice cream is demanded. Tastes–when tastes change, the quantity demanded changes.