GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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In case of contraction or extension in demand, the movement is along a demand curve whereas in case of increase or decrease, the demand curve will move
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upward
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downward
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any of these
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none of these
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Explanation:
Detailed explanation-1: -Hence, we can conclude that with an increase in income the demand curve shifts to the right. On the other hand, if the income falls, then the demand curve will shift to the left decreasing the desire to purchase the commodity.
Detailed explanation-2: -An increase in quantity demanded is caused by a decrease in the price of the product (and vice versa). A demand curve illustrates the quantity demanded and any price offered on the market. A change in quantity demanded is represented as a movement along a demand curve.
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