TRUE OR FALSE? An increase in price tends to make consumer buy less and sellers to sell more. A price decrease tends to cause the opposite reaction. An increase in income will shift the demand curve to the left on the graph. A decrease in income will shift the demand curve to the right. Shifts in either the demand curve alone or the supply curve alone cannot cause a change in the equilibrium point. It is only when both the demand curve and supply curve shift that the equilibrium point is changed.
TRUE OR FALSE? An increase in price tends to make consumer buy less and sellers to sell more. A price decrease tends to cause the opposite reaction. An increase in income will shift the demand curve to the left on the graph. A decrease in income will shift the demand curve to the right. Shifts in either the demand curve alone or the supply curve alone cannot cause a change in the equilibrium point. It is only when both the demand curve and supply curve shift that the equilibrium point is changed.
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 8WNG
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TRUE OR FALSE?
An increase in price tends to make consumer buy less and sellers to sell more. A price decrease tends to cause the opposite reaction.
An increase in income will shift the demand curve to the left on the graph. A decrease in income will shift the demand curve to the right.
Shifts in either the demand curve alone or the supply curve alone cannot cause a change in the equilibrium point. It is only when both the demand curve and supply curve shift that the equilibrium point is changed.
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