asked 227k views
5 votes
True or False. A shift in the demand curve is called an increase in demand, as opposed to a change in quantity demanded with a change in price.

1 Answer

2 votes

Final answer:

A shift in the demand curve is called an increase in demand, which occurs when the quantity demanded changes at every price level. This is different from a change in quantity demanded, which refers to movement along the demand curve due to a change in price.

Step-by-step explanation:

A shift in the demand curve is called an increase in demand. It occurs when the quantity demanded changes at every price level, causing the entire demand curve to shift to the right or left. This is different from a change in quantity demanded, which refers to movement along the demand curve due to a change in price.

For example, if the demand for a product increases because of a change in consumer preferences or an increase in income, the entire demand curve will shift to the right. On the other hand, a decrease in demand, such as a decline in consumer preferences or a decrease in income, will shift the demand curve to the left.

These shifts in demand are known as demand determinants and can have various causes, including changes in consumer tastes, income, prices of related goods, population demographics, and more.

answered
User Dan Filimon
by
8.1k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.