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CA Foundation · Business Economics · Theory of Demand and Supply

Which of the following is a change in 'quantity demanded' (a movement along the same demand curve) and NOT a change in 'demand'?

The rise in mango purchases following a fall in mango's own price is a change in quantity demanded, shown by movement along the same demand curve. The other options involve related-good prices, tastes or income, which shift the entire demand curve.

  1. AFall in demand for scooters because the price of petrol rises sharply
  2. BRise in demand for woollen jackets because winter sets in
  3. CRise in purchase of mangoes because their own price falls from ₹120 to ₹100 per kgCorrect
  4. DRise in demand for smartphones because consumer incomes increase

Explanation

A change in the commodity's own price causes a movement along the demand curve, called expansion or contraction of quantity demanded. Petrol price (a related good), season (tastes) and income are other determinants and shift the whole curve, so they change demand.

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