In a movement along the demand curve, the demand scheduleMultiple Choicestays the same, as does the price.increases, as does the price.decreases, as does the price.stays the same, but the price changes.

If a consumer’s income increases: Group of answer choicesThere will be a change in demand.There will be a movement along the demand curve.There will be an increase in the quantity demanded, but the demand curve will not shift.b and c.None of the above.

the effect of changes in price on quantity demanded, i.e. movement along the curve

Suppose in a market, there is a change in the price of a good or service. Let’s call this Scenario A. Now, suppose in the same market, there is a change in the income and preferences of customers, or a change in the prices of other goods or services. Let’s call this Scenario B. From the options given below, choose the statement that correctly captures how changes in demand will occur in both of these scenarios. In Scenario A, the demand curve remains fixed, whereas the price and the quantity demanded shift to a different point on the same curve, i.e., we observe a movement observed along a fixed demand curve. In Scenario B, the demand curve itself changes. There is a change in the quantity demanded at the same price, due to which the market shifts to an altogether different demand curve. In Scenario A, the demand curve itself changes. There is a change in the quantity demanded at the same price, due to which the market shifts to an altogether different demand curve.In Scenario B, the demand curve remains fixed, whereas the price and the quantity demanded shift to a different point on the same curve, i.e., we observe a movement observed along a fixed demand curve.In Scenario A, the demand curve itself changes. There is a change in the quantity demanded at the same price, due to which the market shifts to an altogether different demand curve. In Scenario B,  there is no change observed in either the price or the demand.In Scenario A, there is no change observed in either the price or the demand.In Scenario B, the demand curve remains fixed, whereas the price and the quantity demanded shift to a different point on the same curve, i.e., we observe a movement along a fixed demand curve.

An increase in price shifts the demand curve to the left.Group of answer choicesTrueFalse

When a demand curve shifts to the rightMultiple Choicedemand has increased, so equilibrium price increases, and equilibrium quantity increases.demand has decreased, so equilibrium price decreases, and equilibrium quantity decreases.demand has increased, so supply also shifts to the right, and the equilibrium price increases.demand has decreased, so supply also shifts to the right, and the equilibrium price decreases.