Question

Which of the following are true or false?

a) Extension or Contraction of demand results in the movement along side the demand curve
b) Negative slope of demand curve and downward bend of demand curve are the same thing

• A. Both (a) and (b) are true
• B. (a) is true, but (b) is false
• C. (a) is false, but (b) is true
• D. Both (a) and (b) are false

Answer 1

The correct option is A Both (a) and (b) are true

a) Extension and Contraction of demand results in the movement along side the demand curve: This statement is also true as extension and contraction of demand is observed when the price of the commodity changes, other things remaining constant.b) Negative slope of demand curve and downward bend of demand curve are the same thing- This statement is also true. Demand curve slopes downward because of the inverse relationship between price and quantity demand.