Advertisements
Advertisements
Question
Give two reasons for the shift of the demand curve towards the left.
Advertisements
Solution
The demand curve may shift towards the left due to the following reasons:
- Fall in consumer's income.
- Fall in the price of a substitute for the good.
RELATED QUESTIONS
What is meant by an increase in demand?
If Coke and Fanta are close substitutes to each other, a rise in price of Coke will lead to ______ for Fanta.
What does an upward movement along the same demand curve indicate?
What is an expansion of demand?
Define decrease in demand.
In order to encourage tourism in Goa, Government of India suggests Indian Airlines to reduce air fares to Goa from four major cities: Chennai, Kolkata, Mumbai and New Delhi. If the Indian Airlines reduces the air fare to Goa, how will this affect the market demand curve for air travel to Goa?
With the help of a suitable diagram, distinguish between a change in quantity demanded and a change in demand.
What causes a downward movement along a demand curve?
State whether the following statement is true or false. Give reasons.
A change in quantity demanded as a result of price change will imply a shift of the demand curve to the right.
State whether the following statement is true or false. Give reasons.
Contraction of demand is the result of a decrease in the number of consumers.
