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JAMB Economics 1995 Question 16

Question 16

Theory of Demand

The effect of changes in the condition of demand on a demand schedule with the price constant is a

  1. A.movement along the demand curve
  2. B.deflation of the demand curve
  3. C.hyperbola formation by the demand curve
  4. D.shift of the demand curve.
Show the answer and explanation

Answer: D (shift of the demand curve.)

Explanation

A change in anything other than the good's own price (income, tastes, other prices) changes demand at every price, so the whole curve shifts.