Question

During the Diwali season, the demand for sweets increases even when the price remains the same. How will this affect the demand curve of sweets?

Options

• The demand curve will shift towards the right.

• The demand curve will shift towards the left.

• There will be upward movement on the demand curve.

• There will be downward movement on the demand curve.

Answer 1

The demand curve will shift towards the right.

Explanation:

A seasonal rise in demand is caused by a factor other than the good’s own price. Consumers demand more sweets at the same price, so the entire demand curve shifts to the right.