In the graph, the price falls from ₹8 to ₹4. What happens? A demand curve D, Qd = 60 − 5P: point A at price ₹8 and quantity 20, point B at price ₹4 and quantity 40.

In the graph, the price falls from ₹8 to ₹4.

Question 4

MediumOriginal question

In the graph, the price falls from ₹8 to ₹4. What happens?

A demand curve D, Qd = 60 − 5P: point A at price ₹8 and quantity 20, point B at price ₹4 and quantity 40.

Quantity demanded rises from 20 to 40: a movement down the curve from A to BCorrect answerYour answerThe demand curve shifts to the rightCorrect answerYour answerQuantity demanded falls from 40 to 20Correct answerYour answerDemand increasesCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

A change in the good's own price moves the buyer along the same curve.
At ₹8 the quantity is 20 (A); at ₹4 it is 40 (B). This is an extension of demand.

Worth noting

'Demand increases' means the whole curve moves right, which a change in own price does not cause.

Concept: Movement along the demand curve
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe demand schedule, curve and law

Practise this chapter →

Ten questions from Demand & Its Determinants, at your own pace.

Practise this chapter →

Ten questions from Demand & Its Determinants, at your own pace.

In the graph, the price falls from ₹8 to ₹4.

Question 4

Explanation