Question

Match the following events with their effects on the demand curve:

• A. Rightward shift
• B. Downward movement
• C. Upward movement
• D. Leftward shift

Answer 1

(i) An increase in income of the consumers implies a rightward shift of the demand curve.

(ii) A decrease in price is a downward movement along the demand curve.

(iii) An increase in the price means lower quantity is demanded. This is reflected as an upward movement along the demand curve.

(iv) A decrease in the number of buyers implies a leftward shift of the demand curve.