Consider the demand for wine: Which of the following would cause a movement alon
ID: 1237436 • Letter: C
Question
Consider the demand for wine:Which of the following would cause a movement along the demandcurve for wine? Check all that applies
1) A change in the numbers of consumers
2)A change in the price of wine
3) A change in the price of cheese (complement to wine)
Which of the following would cause a shift of the demand curve forwine? Check all that applies.
1) A change in the consumers' income
2) A change in the price of cheese ( complement to wine)
3) A change in consumers' tastes that makes them desire morewine
Explanation / Answer
ANS1 1.2)A change in the price of wine
MOVEMENT ALONG THE DEMAND CURVE IS THE RESULT OF CHANGE IN THE OWN PRICE OF THE COMMODITY
ANS221) A change in the consumers' income
2) A change in the price of cheese ( complement to wine)
3) A change in consumers' tastes that makes them desire morewine
IN THE SECOND ANS ALL THE THREE OPTIONS WOULD CAUSE SHIFT IN THE DEMAND CURVE
WHEN WHEN THERE IS A CHANGE IN THE OTHER FACTORS INFLUENCING THE DEMAND
(not the own price of the commodity) , THERE IS CHANGE IN THE DEMAND. IT RESULTS IN THE SHIFT OF DEMAND CURVE EITHER TO ITS RIGHT OR TO ITS LEFT.