[Solved] A demand curve will not shift:

McqMate

Q.	A demand curve will not shift:
A.	When only income changes
B.	When only prices of substitute products change
C.	When there is a change in advertisement expenditure
D.	When only price of the commodity changes
Answer» D. When only price of the commodity changes
Explanation: In economics, the demand curve is the graph depicting the relationship between the price of a certain commodity and the amount of it that consumers are willing and able to purchase at that given price. A change in price of the commodity leads to a movement along the demand curve without shifting it. In simple words, the increase of decrease in price of a commodity only causes contraction or extension of demand (increase causes contraction while decrease cause extension). Increase or decrease in demand only occurs only when there is achange in other determinants of demand, other than price of the commodity.

727

0

Do you find this helpful?

4

View all MCQs in

Discussion

No comments yet

Related MCQs

When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will -
Inwhich market structure is the demand curve of the market represented by the demand curve of the firm?
The demand of a commodity is a direct demand but the demand of a factor of production is called a -
The demand for two or more commodities or factor of production that are used together so that a change in demand for one will be reflected in a change in demand for other e.g., cloth and thread is called
The demand curve for a Giffen good is
The demand curve shows that price and quantity demanded are -
Kinked demand curve is a feature of -
A demand curve, which is parallel to the horizontal axis, showing quantity, has the price elasticity equal to -
The demand curve facing a perfectly competitive firm is -
Demand curve of a firm under perfect competition is :