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 does a downward movement along the same demand curve indicate?
What does an upward movement along the same demand curve indicate?
Define decrease in demand.
Explain the following diagram:
With the help of a suitable diagram, distinguish between a change in quantity demanded and a change in demand.
What is meant by an increase in demand?
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.
Explain the following diagram.
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.
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.
