PRC-3 · Chapter 10 · Question 49 of 70
Due to COVID-19, the world went into strict lockdowns. Consequently, the international market saw massive cuts in the consumption of petroleum. In economic theory, this inward shift of the curve is known as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Fall in demand
Explanation
A change in an external condition (like a pandemic destroying the need to travel) shifts the entire demand curve to the left, which is termed a 'fall in demand'.
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