Question
When the price of a commodity falls, its demand increases. State true or false.
Answer: Option B
:
B
As the price of a good falls, its quantity demanded increases. It corresponds to movement along the demand curve. A change in demand refers to a shift of the demand curve itself. Hence, the two are separate.
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:
B
As the price of a good falls, its quantity demanded increases. It corresponds to movement along the demand curve. A change in demand refers to a shift of the demand curve itself. Hence, the two are separate.
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