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Can you explain the answer of this question below:
Movement along the same demand curve shows :
- A:Expansion of demand
- B:Expansion of supply
- C:Expansion and contraction of demand
- D:Increase and decrease of demand
The answer is c.
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Can you explain the answer of this question below:Movement along the s...
Explanation:
When movement occurs along the same demand curve, it shows a change in the quantity demanded of a product or service at different prices. This change in the quantity demanded is due to factors such as changes in income, changes in consumer preferences, or changes in the price of substitute or complementary goods.
Expansion and Contraction of Demand:
Movement along the same demand curve can show both expansion and contraction of demand. The direction of the movement depends on the price level and the elasticity of demand.
- Expansion of Demand: If the price of a product decreases, the quantity demanded increases. This movement along the same demand curve shows an expansion of demand. In other words, consumers are willing to buy more of the product at lower prices.
- Contraction of Demand: On the other hand, if the price of a product increases, the quantity demanded decreases. This movement along the same demand curve shows a contraction of demand. In other words, consumers are willing to buy less of the product at higher prices.
Therefore, movement along the same demand curve shows the expansion and contraction of demand due to changes in price levels. It is important to note that a shift in the demand curve would indicate a change in demand due to factors other than price.
When movement occurs along the same demand curve, it shows a change in the quantity demanded of a product or service at different prices. This change in the quantity demanded is due to factors such as changes in income, changes in consumer preferences, or changes in the price of substitute or complementary goods.
Expansion and Contraction of Demand:
Movement along the same demand curve can show both expansion and contraction of demand. The direction of the movement depends on the price level and the elasticity of demand.
- Expansion of Demand: If the price of a product decreases, the quantity demanded increases. This movement along the same demand curve shows an expansion of demand. In other words, consumers are willing to buy more of the product at lower prices.
- Contraction of Demand: On the other hand, if the price of a product increases, the quantity demanded decreases. This movement along the same demand curve shows a contraction of demand. In other words, consumers are willing to buy less of the product at higher prices.
Therefore, movement along the same demand curve shows the expansion and contraction of demand due to changes in price levels. It is important to note that a shift in the demand curve would indicate a change in demand due to factors other than price.
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Community Answer
Can you explain the answer of this question below:Movement along the s...
It occurs due to change in price if price increases the demand for the product will reduce which wont shifts the demand curve but results in lesser amount of quantity demanded which means contractions where when price decreases the demand for the commodity will reach the higher point of same demand curve which means expansionof demand
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Can you explain the answer of this question below:Movement along the same demand curve shows :A:Expansion of demandB:Expansion of supplyC:Expansion and contraction of demandD:Increase and decrease of demandThe answer is c.
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Can you explain the answer of this question below:Movement along the same demand curve shows :A:Expansion of demandB:Expansion of supplyC:Expansion and contraction of demandD:Increase and decrease of demandThe answer is c. 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 Can you explain the answer of this question below:Movement along the same demand curve shows :A:Expansion of demandB:Expansion of supplyC:Expansion and contraction of demandD:Increase and decrease of demandThe answer is c. covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can you explain the answer of this question below:Movement along the same demand curve shows :A:Expansion of demandB:Expansion of supplyC:Expansion and contraction of demandD:Increase and decrease of demandThe answer is c..
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