Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

What does the movement along the same demand curve show?

Options:

Expansion of supply only

Contraction of demand only

Both expansion and contraction of demand

Both expansion and contraction of supply

Correct Answer:

Both expansion and contraction of demand

Explanation:

The changes in the demand can be categorised into 2 categories:

  • Movement along the demand curve: Change in demand due to change in price of the commodity.
  • Shift in the demand curve: Change in demand due to change in factors other than the price of commodity.