A fall in price ?
Correct answer: C. May be caused by a fall in demand
- A. Will cause an inward shift of demand
- B. Will cause an outward shift of supply
- C. May be caused by a fall in demand
- D. Leads to a higher level of production
Explanation
A fall in demand shifts the demand curve left and normally lowers the equilibrium price. A fall in price itself causes movement along a demand curve, not an inward shift of demand.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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