Which of the following would not shift the demand curve for a good or service?

Question 1:

Which of the following would NOT shift the demand curve for a good?

A- a change in income (if the good is an inferior good).
B- A change in the price of the good.
C- a change in the price of a related good.
D- a change in the expectations about the future price of the good.
E- All of the above will shift the demand curve for a good.

Question 2:

The primary difference between a change in demand and a change in quantity demanded is:

A- a change in demand is a movement along the demand curve and a change in quantity demanded is a shift in the demand curve.
B- a change in quantity demanded is a movement along the demand curve and a change in demand is a shift in the demand curve.
C- both are shifts in the demand curve, only in different directions.
D- both are movements along the demand curve, only in different directions.

Answer

1.))))

B

A change in the price of the good

2.))))

B

a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve

ANSWER1. The correct answer is 'E'

ANSWER2. The correct answer is 'B'

1. Option 'B' is correct.

Demand curve will not shift at a change in price of the good. If the price is changed, demand of quantity will also be changed. At a lower price, quantity is demanded more. At a higher price, less quantity is demanded. Therefore, it is the movement along the demand curve.

At higher income, inferior goods are not demanded, and the demand curve will shift to the left.

If the price of related good like, cement, is increased, the demand of brick will be decreased. Then the demand curve will shift to the left.

At the thinking of higher price in future, the quantity is demanded more at present. Therefore, the demand curve will shift to the right.

2. Option 'B' is correct.

In case of increase or decrease in quantity demanded, the demand will move along the demand cusrve. But the shift in demand is due to change in demand.

Quantity demanded is the relation between price and demand. If price decreases quantity is demanded more.

Change in demand means shift in demand due to the effect other than price.

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