Which of the following would cause the demand curve for an item to shift to the left?
A. A decrease in the price of an important resource needed to produce the item.
B. An increase in business taxes.
C. An increase in consumers' incomes.
D. A decrease in the price of an item the consumer considers to be a substitute.
The demand curve depicts a relation between the P (price) of a commodity and the Q (quantity) of output. For normal goods, the price of the commodity and the Qd (quantity demanded) always moves in the opposite direction.
Answer and Explanation: 1
The correct answer is option D) A decrease in the price of an item the consumer considers to be a substitute.
When there is a decrease in the price...
See full answer below.
Become a member and unlock all Study Answers
Start today. Try it nowCreate an account
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
fromChapter 7 / Lesson 11
Learn about the market demand curve definition. Find out about the importance of a market demand schedule and how to plot market demand on a graph.