Question

True or False with Reasons:

Due to fall in cost of making bicycles, its price has reduced. It will shift the demand curve of bicycles towards right.

Answer 1

This statement is false.

Explanation:

• The lower cost of making bicycles reduces their price; this is a change in the bicycles’ own price.
• A fall in their own price causes a downward movement along the same demand curve, not a rightward shift.