ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a movement along a given demand curve to a higher quantity demanded
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a movement along a given demand curve to a lower quantity demanded
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a shift to a different demand schedule with lower quantities demanded
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a shift to a different demand schedule with higher quantities demanded
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Detailed explanation-1: -A change in the price of the product causes a movement along the demand and supply curve.
Detailed explanation-2: -It is a true statement. A decrease in the price of complementary goods will shift the demand curve rightward. It causes an increase in demand for a good or a rightward shift in the demand curve causes an increase in both price and output of a complementary good in an economy.
Detailed explanation-3: -Economists call this the Law of Demand. If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand.
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.