Advertisements
Advertisements
Question
Explain the following diagram:
Advertisements
Solution
The diagram above shows a change in the demand curve to the left. From the demand curve D1D1 to DD, a decline in quantity is caused by a change in market conditions rather than a change in its own price. At the same price P, demand was initially Q1 quantity but eventually decreased to Q.
APPEARS IN
RELATED QUESTIONS
What is meant by the contraction in demand?
Differentiate between extension and contraction of demand.
What does a downward movement along the same demand curve indicate?
When the demand curve of a product shifts to the right, it represents a situation of ______.
With the help of a suitable diagram, distinguish between a change in quantity demanded and a change in demand.
Distinguish between “movement along the demand curve” and shift of a demand curve.
What is meant by an increase in demand?
What causes an upward movement along a demand curve?
The following table shows a change in the demand. Read the table carefully and answer the question that follows:
| Case I | Case II | ||
| Price (₹) | Quantity | Price (₹) | Quantity |
| 10 | 20 | 10 | 20 |
| 10 | 10 | 5 | 20 |
What type of change is it, decrease in demand or contraction in demand? Give a reason.
State whether the following statement is true or false. Give reasons.
An increase in the demand for a commodity is due to a fall in its price.
