What would cause a movement down the demand curve for cars?1 pointA a fall in the price of carsB a fall in the price of petrolC a rise in the price of car insuranceD a rise in the price of public transport
Question
What would cause a movement down the demand curve for cars?1 pointA a fall in the price of carsB a fall in the price of petrolC a rise in the price of car insuranceD a rise in the price of public transport
Solution
A movement down the demand curve for cars would be caused by a fall in the price of cars (Option A).
Here's why:
The demand curve illustrates how the quantity of a good demanded by consumers depends on its price. When the price of a good (in this case, cars) decreases, consumers are more likely to purchase it, leading to an increase in quantity demanded. This is represented by a movement down the demand curve.
The other options (B, C, D) refer to changes in the prices of related goods (petrol, car insurance, public transport), which can affect the demand for cars, but these changes would cause a shift in the demand curve, not a movement along the demand curve.
Similar Questions
Which of the following will not cause a change in the demand curve for cars?a.A change in the price of carsb.A change in the price of petrolc.A change in the quality and quantity of public transportd.A change in household incomee.A change in the number of buyers
Which one of the following factors will cause movements along the demand curve of good X?A change in the price of good X.A change in the price of complementary good Y.A change in the price of substitute good Z.A change in consumer preferences for good X.
Which of the following causes the demand curve to shift to the right?*1 pointA. A reduction in the size of populationB. An increase in the income of the buyerC. The availability of substitutesD. A decrease in price of the good
What would cause the demand curve to shift?Change in consumer preferences.Change in the number of suppliers.Change in the input costs of production.All of the above.
If a consumer’s income increases: Group of answer choicesThere will be a change in demand.There will be a movement along the demand curve.There will be an increase in the quantity demanded, but the demand curve will not shift.b and c.None of the above.
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