What Happens to the Demand Curve When a Non-Price Determinant

question 61

Multiple Choice

What happens to the demand curve when a non-price determinant of demand changes?

• A) The demand curve shifts to the left or to the right.
• B) There is a movement along the demand curve.
• C) The consumer moves to a different price point.
• D) The demand curve does not change when a non-price determinant of demand changes.

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Definitions:

Aggregate Supply

Aggregate supply is the total supply of goods and services that firms in an economy plan on selling during a specific time period.

Misperceptions Theory

The theory that suggests business cycles can result from the misinterpretation of economic data by firms and consumers.

Aggregate Demand

The comprehensive need for products and services within an economy at a specified price range and time span.

Aggregate Supply

The complete amount of products and services that businesses within a country's economy intend to sell over a certain period.