Question

There is a sudden change in climatic conditions resulting in hot weather. Assuming no change in the price of the cold drinks, it will lead to ______.

Options

• Upward movement along the same market demand curve

• Downward movement along the same market demand curve

• Rightward shift in the market demand curve

• Leftward shift in the market demand curve

Answer 1

There is a sudden change in climatic conditions resulting in hot weather. Assuming no change in the price of the cold drinks, it will lead to rightward shift in the market demand curve.

Explanation:

Hot weather makes consumers want more cold drinks at the same price, increasing market demand. A change in a factor other than the good’s own price shifts the curve rightward.