The demand curve moves from D to D₂ as shown. This is called Two demand curves: D (Qd = 60 − 5P) and D₂ (Qd = 40 − 5P), to its left. At a price of ₹6, the quantity on D is 30 and on D₂ is 10. An arrow points from D to D₂.

The demand curve moves from D to D₂ as…

The demand curve moves from D to D₂ as shown.

Question 23

MediumOriginal question

The demand curve moves from D to D₂ as shown. This is called

a decrease in demandCorrect answerYour answera contraction of demandCorrect answerYour answeran increase in demandCorrect answerYour answeran extension of demandCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

At the same price of ₹6, buyers now want 10 instead of 30: less at each price.
A leftward shift of the whole curve is a decrease in demand.

Worth noting

A contraction is a movement up the same curve caused by a rise in own price.

Concept: Decrease in demand
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsDeterminants of demand

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.

The demand curve moves from D to D₂ as shown.

Question 23

Explanation