Question 34
Theory of DemandA change in demand for a normal good means
- A.a shift in the demand curve
- B.a change in the price elasticity
- C.the demand changes as price changes
- D.a movement along a given demand curve
Show the answer and explanation
Answer: A (a shift in the demand curve)
Explanation
A change in demand is caused by factors other than the good's own price (income, tastes, etc.) and shows as a shift of the whole demand curve.