Home › CA Foundation › Business Economics › Elasticity of Demand › A change in the quantity demanded of a good caus…
A change in the quantity demanded of a good caused solely by a change in its own price, all other factors constant, is represented graphically as which of the following?
AA rightward shift of the demand curve
BA movement along the same demand curve
CA leftward shift of the demand curve
DA rotation of the demand curve about the origin
Answer & Solution
Correct answer: B. A movement along the same demand curve
1. Expansion and contraction of demand happen due to a change in the good's own price.
2. All other determinants remain constant in this case.
3. This is shown as movement up or down the same demand curve.
4. So it is a movement along the same demand curve.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit I "Law of Demand and Elasticity of Demand", p.12_
Related questions
Using the Point method on a straight-line demand curve AB, elasticity at point P is given Under the Total Outlay method, demand is said to be unitary elastic when:Which of the following is NOT one of the four methods of measuring elasticity of demand liCross elasticity of demand (Ec) measures:Income elasticity of demand (Ey) is defined as:If proportionate change in demand equals proportionate change in price, the demand is:If a small change in price produces a much larger proportionate change in demand, the demaIf the price of a good changes and demand does not change at all, the price elasticity of