Which of the Following Is True

question 8

Multiple Choice

Which of the following is true?

• A) An increase in population shifts the demand curve for most goods leftward.
• B) If consumers expect the price of a good will rise in the future, the demand curve shifts leftward.
• C) For an inferior good, when income increases, the demand curve shifts leftward.
• D) The demand curve for a good shifts leftward when the price of a substitute rises.

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Definitions:

Quantity Demanded

The sum of a product or service that buyers are prepared and able to buy at a specific price.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often used to gauge the sensitivity of demand.

Constant Slope

A straight line graph that indicates a uniform rate of change between two variables.

Price-inelastic

Price-inelastic describes a situation where the demand for a good or service is relatively unaffected by changes in its price, indicating that consumers continue to purchase it even if the price increases.