Practicing Success
Which of the following causes a downward movement along the demand curve : |
Rise in the income of the consumer Fall in the price of substitute goods Fall in the price of the commodity Rise in price of substitute goods |
Fall in the price of the commodity |
The correct answer is option (3) : Fall in the price of the commodity Fall in the price of the commodity: When the price of a commodity decreases, all else being equal, consumers tend to buy more of that commodity. This results in a movement down along the demand curve, showing an increase in quantity demanded. Let's analyze the other options:
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