Movement vs
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Questions and Answers

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?

    <p>Decrease in desire to purchase the commodity</p> Signup and view all the answers

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

    <p>It shifts</p> Signup and view all the answers

    What is the movement of the demand curve?

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

    What factors can affect the demand curve?

    <p>Consumer income, tastes, and prices of other goods</p> Signup and view all the answers

    When does a movement along the demand curve occur?

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

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

    <p>Shift of the demand curve</p> Signup and view all the answers

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

    <p>Upward or downward</p> Signup and view all the answers

    What is the significance of equilibrium in the market?

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

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

    <p>Price increases and quantity supplied increases</p> Signup and view all the answers

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

    <p>They demand less due to income and substitution effects</p> Signup and view all the answers

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

    <p>It puts downward pressure on price</p> Signup and view all the answers

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

    <p>It increases due to positive income and substitution effects</p> Signup and view all the answers

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

    <p>12</p> Signup and view all the answers

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

    <p>350 units</p> Signup and view all the answers

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

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

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

    <p>They are equal</p> Signup and view all the answers

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

    <p>By exerting pressure to restore equilibrium</p> Signup and view all the answers

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