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The downward movement along the demand curve of a commodity is due to: Choose the correct option.
  • a)
    Decrease in taxes.
  • b)
    Decrease in the income of the consumer.
  • c)
    Decrease in the price of its substitute.
  • d)
    Decrease in the price of the commodity demanded.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The downward movement along the demand curve of a commodity is due to:...
Explanation:

Introduction:
The downward movement along the demand curve of a commodity refers to a decrease in the quantity demanded of the commodity at each price level. It represents a shift from one point on the demand curve to another, where the quantity demanded decreases.

Decrease in the price of the commodity demanded:
The correct answer to the given question is option 'D', which states that a decrease in the price of the commodity demanded leads to a downward movement along the demand curve. This is because a decrease in the price of a commodity makes it more affordable and attractive to consumers, leading to an increase in the quantity demanded. As a result, consumers are willing to buy more of the commodity at lower prices, causing a downward movement along the demand curve.

Explanation:
When the price of a commodity decreases, it creates an incentive for consumers to purchase more of that commodity. This is because the lower price makes the commodity relatively cheaper compared to other goods and services in the market. As a result, consumers may choose to substitute other goods with this cheaper commodity.

Substitution effect:
A decrease in the price of a commodity also affects the demand for its substitutes. If the price of a substitute commodity remains constant, the decrease in the price of the original commodity makes it a more attractive option for consumers. This leads to a decrease in the demand for the substitute and an increase in the demand for the original commodity. Consequently, there is a downward movement along the demand curve for the original commodity.

Income effect:
A decrease in the price of a commodity may also have an income effect on consumers. If the price decrease leads to increased purchasing power for consumers, they may choose to buy more of the commodity, resulting in a downward movement along the demand curve.

Conclusion:
In summary, the downward movement along the demand curve of a commodity is primarily caused by a decrease in the price of the commodity demanded. This decrease in price makes the commodity more affordable and attractive to consumers, leading to an increase in the quantity demanded and a subsequent downward movement along the demand curve.
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Community Answer
The downward movement along the demand curve of a commodity is due to:...
Downward Movement of Demand Curve - When the price of the commodity falls, the quantity demanded rises. It leads to the downward movement of the demand curve. It is also known as expansion of demand.
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Direction: Read the case Study given below and answer an three of the questions that follow.The temperature-depth profile for the ocean water shows how the temperature decreases with the increasing depth. The profile shows a boundary region between the surface waters of the ocean and the deeper layers. The boundary usually begins around 100 - 400 m below the sea surface and extends several hundred of metres downward. This boundary region, from where there is a rapid decrease of temperature, is called the thermocline. About 90 per cent of the total volume of water is found below the thermocline in the deep ocean. In this zone, temperatures approach 0°C. The temperature structure of oceans over middle and low latitudes can be described as a three-layer system from surface to the bottom. The first layer represents the top layer of warm oceanic water and it is about 500 m thick with temperatures ranging between 20° and 25°C. This layer, within the tropical region, is present throughout the year but in mid latitudes it develops only during summer. The second layer called the thermocline layer lies below the first layer and is characterised by rapid decrease in temperature with increasing depth. The thermocline is 500-1,000 m thick. The third layer is very cold and extends upto the deep ocean floor. In the Arctic and Antarctic circles, the surface water temperatures are close to 0°C and so the temperature change with the depth is very slight. Here, only one layer of cold water exists, which extends from surface to deep ocean floor.Q. The __________ profile for the ocean water shows how the temperature decreases with the increasing depth.

Direction: Read the case Study given below and answer an three of the questions that follow.The temperature-depth profile for the ocean water shows how the temperature decreases with the increasing depth. The profile shows a boundary region between the surface waters of the ocean and the deeper layers. The boundary usually begins around 100 - 400 m below the sea surface and extends several hundred of metres downward. This boundary region, from where there is a rapid decrease of temperature, is called the thermocline. About 90 per cent of the total volume of water is found below the thermocline in the deep ocean. In this zone, temperatures approach 0°C. The temperature structure of oceans over middle and low latitudes can be described as a three-layer system from surface to the bottom. The first layer represents the top layer of warm oceanic water and it is about 500 m thick with temperatures ranging between 20° and 25°C. This layer, within the tropical region, is present throughout the year but in mid latitudes it develops only during summer. The second layer called the thermocline layer lies below the first layer and is characterised by rapid decrease in temperature with increasing depth. The thermocline is 500-1,000 m thick. The third layer is very cold and extends upto the deep ocean floor. In the Arctic and Antarctic circles, the surface water temperatures are close to 0°C and so the temperature change with the depth is very slight. Here, only one layer of cold water exists, which extends from surface to deep ocean floor.Q. Which layer is characterised by rapid decrease in temperature with increasing depth?

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The downward movement along the demand curve of a commodity is due to: Choose the correct option.a)Decrease in taxes.b)Decrease in the income of the consumer.c)Decrease in the price of its substitute.d)Decrease in the price of the commodity demanded.Correct answer is option 'D'. Can you explain this answer?
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The downward movement along the demand curve of a commodity is due to: Choose the correct option.a)Decrease in taxes.b)Decrease in the income of the consumer.c)Decrease in the price of its substitute.d)Decrease in the price of the commodity demanded.Correct answer is option 'D'. Can you explain this answer? for Humanities/Arts 2024 is part of Humanities/Arts preparation. The Question and answers have been prepared according to the Humanities/Arts exam syllabus. Information about The downward movement along the demand curve of a commodity is due to: Choose the correct option.a)Decrease in taxes.b)Decrease in the income of the consumer.c)Decrease in the price of its substitute.d)Decrease in the price of the commodity demanded.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for Humanities/Arts 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The downward movement along the demand curve of a commodity is due to: Choose the correct option.a)Decrease in taxes.b)Decrease in the income of the consumer.c)Decrease in the price of its substitute.d)Decrease in the price of the commodity demanded.Correct answer is option 'D'. Can you explain this answer?.
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