Movement vs

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What happens to the demand curve when there is a change in quantity demanded due to a change in one or more other factors?

It shifts (correct)

It rotates

It becomes steeper

It becomes flatter

When the income of consumers increases, what happens to the demand curve?

It becomes steeper

It shifts to the left

It becomes flatter

It shifts to the right (correct)

What causes movement of the demand curve?

Change in consumer preferences

Change in production technology

Change in government regulations

Change in price with other factors constant (correct)

What does a shift to the left of the demand curve indicate?

Decrease in desire to purchase the commodity Signup and view all the answers

How does a change in consumer preferences affect the demand curve?

It shifts Signup and view all the answers

What is the movement of the demand curve?

Change in quantity demanded due to a change in price, with other factors constant Signup and view all the answers

What factors can affect the demand curve?

Consumer income, tastes, and prices of other goods Signup and view all the answers

When does a movement along the demand curve occur?

Change in quantity demanded due to a change in price, with other factors constant Signup and view all the answers

What happens to the demand curve when there is a change in consumer income?

Shift of the demand curve Signup and view all the answers

In what direction can a movement along the demand curve occur?

Upward or downward Signup and view all the answers

What is the significance of equilibrium in the market?

It is the point at which demand equals supply, eliminating shortages and surpluses Signup and view all the answers

What happens to price and quantity when there is a shortage in the market?

Price increases and quantity supplied increases Signup and view all the answers

How do consumers respond to an increase in price due to a shortage?

They demand less due to income and substitution effects Signup and view all the answers

What is the impact of a surplus on the market price?

It puts downward pressure on price Signup and view all the answers

How does the quantity demanded change in response to a decrease in price due to a surplus?

It increases due to positive income and substitution effects Signup and view all the answers

What is the equilibrium price in the given data set for carrots?

12 Signup and view all the answers

What is the equilibrium quantity in the given data set for carrots?

350 units Signup and view all the answers

How do producers respond to a decrease in price due to a surplus?

They are willing to supply less as it becomes less profitable Signup and view all the answers

What happens to total market demand and supply at the equilibrium point?

They are equal Signup and view all the answers

How do prices act to eliminate shortages and surpluses in the market?

By exerting pressure to restore equilibrium Signup and view all the answers