Asked by Steven Gudiel on Jul 29, 2024
Verified
A decrease in demand for a good generally implies that:
A) consumers are willing to pay a higher price for each unit of the good.
B) consumers are willing to buy larger quantities of the good at each price.
C) the demand curve for the good has shifted to the right.
D) the demand curve for the good has become steeper.
E) the demand curve for the good has shifted to the left.
Demand Curve
A graph showing the relationship between the price of a good and the quantity demanded of that good, typically downward sloping.
Decrease in Demand
A downward shift in the demand curve for a product or service, indicating that consumers are willing to purchase less at each price level.
- Discern factors inducing movements on and transitions in demand curves.
- Distinguish between movements along a demand curve and shifts of the demand curve.
Verified Answer
ZK
Zybrea KnightAug 04, 2024
Final Answer :
E
Explanation :
A decrease in demand for a good means that consumers are willing to buy fewer units of the good at each price. This will shift the demand curve to the left, resulting in a decrease in both the equilibrium price and quantity. Therefore, the best choice is E, as it accurately describes the situation. Choices A, B, C, and D are all incorrect, as they describe situations that would result in an increase in demand, not a decrease.
Learning Objectives
- Discern factors inducing movements on and transitions in demand curves.
- Distinguish between movements along a demand curve and shifts of the demand curve.