10 Questions
What does a movement along the demand curve indicate?
A change in quantity demanded due to a change in the price of the commodity
What does a shift of the demand curve indicate?
A change in demand due to a change in income, tastes, or prices of other goods
Which of the following would cause a contraction of demand?
An increase in the price of the commodity
Which of the following would cause an expansion of demand?
A decrease in the price of the commodity
According to the law of demand, what is the relationship between the price of a good and the quantity demanded?
The quantity demanded decreases as the price increases
Which of the following would NOT cause a shift in the demand curve?
A change in the price of the good itself
Suppose the price of a good increases. According to the law of demand, what would happen to the quantity demanded?
The quantity demanded would decrease
Which of the following would cause a rightward shift of the demand curve?
An increase in consumer tastes for the good
Suppose the price of a good decreases. According to the law of demand, what would happen to the quantity demanded?
The quantity demanded would increase
Which of the following would cause a leftward shift of the demand curve?
A decrease in consumer tastes for the good
Learn about the concept of expansion and contraction of demand in economics, including their graphical representation. Understand how changes in price affect the quantity demanded by consumers.
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