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Zorluk: KolayConcept and Law of Demand

According to the fundamental law of demand, assuming all non-price factors remain constant (ceteris paribus), what is the expected result of an increase in the price of a normal commodity?

  1. A decrease in the quantity demanded of the commodityCevap
  2. B
    A leftward shift of the entire demand curve for the commodity
  3. C
    An increase in the overall demand for the commodity
  4. D
    An immediate decrease in the market price of its substitute good

Cevap

A decrease in the quantity demanded of the commodity
The law of demand states that, holding other factors constant (ceteris paribus), there is an inverse relationship between the price of a commodity and the quantity demanded. Therefore, an increase in price directly leads to a decrease in the quantity demanded along the existing demand curve.

Adım Adım Çözüm

1
Identify the economic variable being changed
The price of the commodity increases.
The scenario specifically asks about the direct impact of an own-price change.
2
Apply the Law of Demand under the ceteris paribus assumption
Price and quantity demanded move in opposite directions (inverse relationship).
As price rises, consumers reduce their quantity bought.
3
Distinguish between a shift in demand and a movement along the demand curve
An own-price change leads to a change in quantity demanded (movement along the curve), not a shift in demand.
Shifts in the demand curve are caused exclusively by non-price determinants (e.g., income, tastes, price of related goods).

Anahtar Kavram

Law of Demand and Movement along the Demand Curve
Tahmini Süre:45s
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Konular

Concept and Law of Demand

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