CIMA BA1 · Chapter 5 · Question 1 of 10
A movement along a demand curve (rather than a shift of the curve) is caused by:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A change in the price of the good itself
Explanation
The demand curve plots quantity demanded against the good's own price, holding other factors constant. A change in own price causes a movement along the curve; changes in income, the prices of related goods or tastes shift the whole curve.
More Demand, supply and price determination MCQs
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- Q5If the government imposes an effective maximum price below the equilibrium price, the most likely result is:
- Q6Using the market in which Qd = 500 - 5P and Qs = -100 + 5P, the government imposes a maximum price of $50. What is the resulting shortage?
- Q7A guaranteed minimum price for an agricultural product is set above the equilibrium price. Which of the following is the most likely…
