Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Shift in the demand curve shown in the figure where $dd_1$ shift parallel to right word. The following is not the reason for shifting.

Options:

Taste

Fashion

Preferences

Price

Correct Answer:

Price

Explanation:

The correct answer is option (4) : Price

The statement "Price" is not a reason for the shift in the demand curve. Changes in price lead to movements along the demand curve, not shifts. Shifts in the demand curve are typically influenced by factors such as taste, fashion, preferences, income, and other non-price related factors. Therefore, the correct answer is  :

Changes in consumer preferences or taste can lead to a shift in the demand curve. For example, if a new study suggests health benefits of a certain product, the demand for that product may increase.

Fashion : Changes in fashion or trends can impact consumer behavior. If a particular style or product becomes fashionable, it can cause a shift in the demand curve as people seek the trendy item.