A Shift of the Demand Curve for a Good Occurs

question 271

True/False

A shift of the demand curve for a good occurs whenever new technologies make inputs used in producing that good available at lower prices.

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Definitions:

Price

The amount of money or compensation exchanged for the ownership or use of a good or service.

Apples

A type of fruit that comes in various colors and flavors, commonly grown in temperate climates.

Perfect Complements

Goods that are consumed together in fixed proportions, such that the consumer regards them as inseparable in use.

Income Effect

The change in an individual's or economy's purchasing power generated by a change in income, affecting the quantity demanded of a good or service.