Asked by Ashley Dominguez on Jun 29, 2024
Verified
An increase in demand for good X can be caused by a decrease in the price of X.
Demand for Good X
The desire and ability of consumers to purchase a specific quantity of Good X at various prices during a certain time period.
Price of X
The amount of money required to purchase a specific good or service named "X."
- Acquire knowledge about the impact of income fluctuations on consumer demand for both normal and inferior products.
- Identify the differences between traveling along a demand or supply curve and the factors that lead to the curve's displacement in supply and demand studies.
Verified Answer
MZ
michell zhengJul 01, 2024
Final Answer :
False
Explanation :
An increase in demand means that more of good X is desired at every price level, which is typically caused by factors other than the price of the good itself, such as changes in consumer preferences, income, or prices of related goods. A decrease in the price of X would lead to an increase in the quantity demanded, not an increase in demand.
Learning Objectives
- Acquire knowledge about the impact of income fluctuations on consumer demand for both normal and inferior products.
- Identify the differences between traveling along a demand or supply curve and the factors that lead to the curve's displacement in supply and demand studies.
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