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Which one of the following would cause the demand curve for automobiles to shift to the left ? a. an increase in the price of the automobiles b. an increase in the interest rate paid to borrow money to pay for the automobile c. an increase in buyers' incomes d. an increase in the cost of production of automobiles?
Most Upvoted Answer
Which one of the following would cause the demand curve for automobile...
Answer:
Shifts in the demand curve for automobiles can be caused by various factors. Out of the given options, only one factor would lead to a leftward shift in the demand curve for automobiles. Let's examine each option.
a. An increase in the price of the automobiles: An increase in the price of automobiles would not cause the demand curve to shift to the left. Instead, it would cause a movement along the demand curve, leading to a decrease in the quantity demanded of automobiles.
b. An increase in the interest rate paid to borrow money to pay for the automobile: An increase in the interest rate paid to borrow money to pay for the automobile would lead to a decrease in the demand for automobiles. This is because higher interest rates would make it more expensive for consumers to borrow money to purchase automobiles, reducing their willingness to buy them.
c. An increase in buyers' incomes: An increase in buyers' incomes would lead to an increase in the demand for automobiles, causing the demand curve to shift to the right.
d. An increase in the cost of production of automobiles: An increase in the cost of production of automobiles would lead to a leftward shift in the demand curve for automobiles. This is because the increased cost of production would lead to higher prices for automobiles, reducing the quantity demanded by consumers.
Therefore, the correct answer is (d) an increase in the cost of production of automobiles would cause the demand curve for automobiles to shift to the left.
Shifts in the demand curve for automobiles can be caused by various factors. Out of the given options, only one factor would lead to a leftward shift in the demand curve for automobiles. Let's examine each option.
a. An increase in the price of the automobiles: An increase in the price of automobiles would not cause the demand curve to shift to the left. Instead, it would cause a movement along the demand curve, leading to a decrease in the quantity demanded of automobiles.
b. An increase in the interest rate paid to borrow money to pay for the automobile: An increase in the interest rate paid to borrow money to pay for the automobile would lead to a decrease in the demand for automobiles. This is because higher interest rates would make it more expensive for consumers to borrow money to purchase automobiles, reducing their willingness to buy them.
c. An increase in buyers' incomes: An increase in buyers' incomes would lead to an increase in the demand for automobiles, causing the demand curve to shift to the right.
d. An increase in the cost of production of automobiles: An increase in the cost of production of automobiles would lead to a leftward shift in the demand curve for automobiles. This is because the increased cost of production would lead to higher prices for automobiles, reducing the quantity demanded by consumers.
Therefore, the correct answer is (d) an increase in the cost of production of automobiles would cause the demand curve for automobiles to shift to the left.
Community Answer
Which one of the following would cause the demand curve for automobile...
Ans : B
We are talking about shift of the curve here, not contraction or expansion, so it will be an external factor first of all.
Secondly, increase in interest rate will demotivate people from buying cars on emi, so B is correct.
We are talking about shift of the curve here, not contraction or expansion, so it will be an external factor first of all.
Secondly, increase in interest rate will demotivate people from buying cars on emi, so B is correct.
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Which one of the following would cause the demand curve for automobiles to shift to the left ? a. an increase in the price of the automobiles b. an increase in the interest rate paid to borrow money to pay for the automobile c. an increase in buyers' incomes d. an increase in the cost of production of automobiles?
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Which one of the following would cause the demand curve for automobiles to shift to the left ? a. an increase in the price of the automobiles b. an increase in the interest rate paid to borrow money to pay for the automobile c. an increase in buyers' incomes d. an increase in the cost of production of automobiles? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which one of the following would cause the demand curve for automobiles to shift to the left ? a. an increase in the price of the automobiles b. an increase in the interest rate paid to borrow money to pay for the automobile c. an increase in buyers' incomes d. an increase in the cost of production of automobiles? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following would cause the demand curve for automobiles to shift to the left ? a. an increase in the price of the automobiles b. an increase in the interest rate paid to borrow money to pay for the automobile c. an increase in buyers' incomes d. an increase in the cost of production of automobiles?.
Which one of the following would cause the demand curve for automobiles to shift to the left ? a. an increase in the price of the automobiles b. an increase in the interest rate paid to borrow money to pay for the automobile c. an increase in buyers' incomes d. an increase in the cost of production of automobiles? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which one of the following would cause the demand curve for automobiles to shift to the left ? a. an increase in the price of the automobiles b. an increase in the interest rate paid to borrow money to pay for the automobile c. an increase in buyers' incomes d. an increase in the cost of production of automobiles? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following would cause the demand curve for automobiles to shift to the left ? a. an increase in the price of the automobiles b. an increase in the interest rate paid to borrow money to pay for the automobile c. an increase in buyers' incomes d. an increase in the cost of production of automobiles?.
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