A movement along the demand curve to the left may be caused by ?
Correct answer: A. a decrease in supply.
- A. a decrease in supply.
- B. a rise in income
- C. a fall in the number of substitute goods
- D. a rise in the price of inputs
Explanation
A decrease in supply tends to raise equilibrium price, causing a contraction in quantity demanded, shown as movement leftward along the existing demand curve. Income and substitute availability shift demand, while input prices shift supply rather than directly causing this movement.
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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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