Advertisements
Advertisements
Question
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.
Options
True
False
Advertisements
Solution
This statement is false.
Explanation:
No, a shift in the demand curve indicates a change in demand due to reasons other than price. It will a shift to the right if demand increases, and to the left if demand decreases.
APPEARS IN
RELATED QUESTIONS
What is meant by an increase in demand?
With the help of a graph explain the increase in demand concept.
Define decrease in demand.
Give two reasons for the shift of the demand curve towards the left.
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?
Define contraction of demand (or decrease in quantity demanded).
What does a rightward shift of demand curve indicate?
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.
With the help of a suitable diagram, explain expansion in demand.
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.
