ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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results in a movement downward the demand curve.
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results in a movement upward the demand curve.
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shifts the demand curve to the left.
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shifts the demand curve to the right.
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Detailed explanation-1: -When the price of the commodity rises, the quantity demanded falls. It leads to the upward movement of the demand curve. It is also known as contraction of demand.
Detailed explanation-2: -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-3: -Upward Movement indicates a decrease in demand, i.e., a decrease in demand due to a price increase. Downward Movement indicates an increase in demand, i.e., demand for the product or service rises as prices decrease.
Detailed explanation-4: -Upward Movement: Indicates contraction of demand, in essence, a fall in demand is observed due to price rise. Downward Movement: It shows expansion in demand, i.e. demand for the product or service goes up because of the fall in prices.
Detailed explanation-5: -Demand curve movement refers to changes in price that affect the quantity demanded. A demand curve shift refers to fundamental changes in the balance of supply and demand that alter the quantity demanded at the same price.