Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Consider the following about Shift of curve.
1. Movement along the curve is associated with change in price.
2. Shift of curve is associated with change in factors other than price.

Select the correct answer using the code given below

• A. 1 only
• B. 2 only
• C. Both 1 and 2
• D. None of the above

Answer 1

The correct option is C Both 1 and 2

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Movement along the curve or in law of demand is associated with change in prices which leads to increase or decrease of demand. While Shift of curve is associated with shifting of curve due to changing in factors other than Prices of commodity.