AP Microeconomics

Category - Microeconomics

When looking at the determinants of demand, a(n) ________ in demand causes the curve to shift to the right, while a(n) _________ in demand causes the curve to shift to the left.
  1. Decrease; increase
  2. Increase; decrease
  3. Consumer shift; supplier shift
  4. None of the above
Explanation
Answer - B - When looking at the determinants of demand, an increase in demand causes the curve to shift to the left, while a decrease in demand causes the curve to shift to the right.

Key Takeaway: The demand curve is the graph that shows the economic relationship between the price of a certain good or service, and the amount that consumers are willing and able to spend upon that good. Remember that the demand curve for all consumers is equal to the sum of all the individual demands at each price added together. In general, an increase in demand causes the curve to shift to the left and a decrease in demand causes the curve to shift to the right.
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