Read the two statements and choose the correct option.
I. A change in the price of a good shifts its own demand curve.
II. A change in the price of a related good shifts a good's demand curve.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

I is false: own price moves the buyer along the curve.
II is true: related goods' prices are among the 'other things' whose change shifts the curve.

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

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

Read the two statements and choose the correct option.I. A change in the price of a good shifts its own demand curve.II. A change in the price of a related good shifts a good's demand curve.