Which of the Following Statements About a Demand Curve Is

question 111

Multiple Choice

Which of the following statements about a demand curve is true?

• A)The demand curve for a good will not shift when money income of consumers increases.
• B)If price increases,the demand curve shifts to the right.
• C)The demand curve for a good will not shift when its price changes.
• D)If a supply curve shifts,thereby changing the price,the demand curve will shift as well.
• E)If a demand curve shifts,the supply curve will shift as well,whether or not the price changes.

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Definitions:

Price-Inelastic

A characteristic of a product or service when consumers’ demand does not change significantly with a change in its price.

Agricultural Product

Any type of product, including food, fibers, fuels, and raw materials, that is derived from farming and ranching.

Price Elasticity of Demand

A determination of demand's sensitivity to pricing shifts of a product.

Agricultural Risk Coverage Program

A U.S. government program that provides financial assistance to agricultural producers when crop revenues or yields fall below guarantee levels.