One reason that the quantity demanded of a good increases when its price falls is that the Multiple Choice price decline shifts the supply curve to the left. lower price shifts the demand curve to the left. lower price shifts the demand curve to the right. lower price increases the real incomes of buyers, enabling them to buy more.
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Step 1: The law of demand states that as the price of a good or service increases, the quantity demanded decreases, and vice versa. Show more…
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Which one of the following statements is correct? A. A rise in the price of a good will cause the supply curve of that good to shift to the left (i.e., the supply of the good will decrease). B. A fall in the price of a good will result in a rightward shift of the demand curve, ceteris paribus (i.e., the demand for the product will increase). C. The quantity demanded of a good depends on the price and availability of the good. D. Demand is a synonym for wants. In other words, if a consumer demands a good, it simply means that he or she wants the good. E. A decrease in the prices of the factors of production used to produce a certain product will give rise to an increase in the supply of the product (illustrated by a rightward shift of the supply curve).
Jennifer S.
Suppose we observe a fall in the price of good A and a decrease in the quantity of good A bought and sold. Which one of the following is a likely explanation? A. The supply of A decreased B. The law of demand is violated C. The demand for A decreased D. The demand for A increased E. The supply of A increased 2. Which of the following shifts the supply curve for good X leftward? A. a decrease in the wages of workers employed to produce X B. a situation in which the quantity demanded of X exceeds the quantity supplied of X C. a situation in which the quantity supplied of X exceeds the quantity demanded of X D. an increase in the cost of the machinery used to produce X E. a technological advance in the production of X 3. If A is an inferior good and consumer income rises, the demand for A A. increases, and the equilibrium price and the equilibrium quantity increase B. increases, and the equilibrium price rises, but the equilibrium quantity decreases C. decreases and the equilibrium price falls, but the equilibrium quantity increases D. decreases, the equilibrium price rises, and the equilibrium quantity decreases E. decreases, and the equilibrium price and the equilibrium quantity decrease.
Rashmi S.
1. Explain how the market demand curve for a 'normal' good will shift (i.e. left, right or no shift) in each of the following cases? What then will happen to the equilibrium price and quantity? Example: "demand curve shifts left, equilibrium price increases, equilibrium quantity decreases." a) The price of substitute good falls b) The price of a complementary good rises c) The price of the good increases
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