ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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____ the demand curve would shift to the left.
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____ the demand curve would shift to the right.
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____ the supply curve would shift to the right.
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____ there would be a movement on the current curve.
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Detailed explanation-1: -Answer and Explanation: When the price of a good or service changes a. There is a movement along a given demand curve. According to the law of demand, there is a negative relationship between the product price and the quantity demanded at each price level.
Detailed explanation-2: -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. The graph on the left lists events that could lead to increased demand.
Detailed explanation-3: -The statement, “When the price of a good or service changes, the supply curve shifts in the opposite direction, ” is False. The supply curve does not shift at all. When the price of a good or service changes, the quantity supplied will change by a movement up or down on the same demand curve.
Detailed explanation-4: -A change in price leads to a movement along the demand curve and it referred to as a change in quantity demanded. Hence option A is the correct answer.
Detailed explanation-5: -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.