ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A change in the price of a good or service causes a movement along a specific demand curve, and it typically leads to some change in the quantity demanded, but it does not shift the demand curve.

Detailed explanation-2: -The answer is D. The demand curve is shifted by consumer tastes and preferences, future expectations of the price or income. All of these variables can shift the quantity demanded at a given price.

Detailed explanation-3: -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-4: -Movement along the demand curve is caused by a change in the commodity’s price, whereas the shift is caused by a change in one or more factors other than the price. There is a change along the curve with movement in the demand curve.

Detailed explanation-5: -Therefore, if product A is inferior good, the demand of product A will reduce when money income increases and demand curve for product A will shift leftwards.