Question

Consider the demand for a good illustrated in the figure below. Suppose the population decreases. What effect would this have in the graph? 

• This would result in a slide down the demand curve. 

• This would result in a slide up the demand curve. 

• This would result the demand curve shifting to the left

• This would result the demand curve shifting to the right.
  

Answer 1

If price of substitute good decreases that means the other good has become cheaper and people would demand more of that good and demand for the given good would decrease. Hence demand curve would shift to the left.

the correct option is c

Answer 2

When the price of substitute decreases in that case the quantity demanded of other substitute also decreases. For example tea and coffee are substitute to each other therefore when the price of tea will decrease then more consumers will be consuming tea and the consumption of coffee will decline.

People would prefer Tea over Coffee.

Thus the demand of tea will increase that is the demand will move along the original demand curve.

But the demand for coffee will shift to its left.

Thus, decrease in substitute price will result in

Shifting the demand curve to the left.

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Answer 3

Option 4. This would result in the demand curve shifting to the right.

Explanation: When the population increases, the demand increases at all price levels. So, the demand curve moves toward the right.

Answer 4

If the population decreases the demand for the good will decline since there will be less number of people buying the good . Since it is a factor other than price which causes change in demand so there will be shift in the demand curve . The demand curve will shift leftwards to show a decline in demand at each price level . Answer : This would result the demand curve shifting to the left .

Answer 5

Demand for inferior good decreases as income increases . As income increases the economy improves so demand for inferior good declines . In case of normal goods the demand increases with increase in income . So an increase in income will cause the demand curve to shift left . Answer : This would result the demand curve shifting to the left .