Concept 2 : Price Changes

Question 1

When there is an extension in demand, the demand curve should shift in which direction?

Answer 1

Right

Question 2

When there is a contraction in demand, the demand curve should shift in which direction?

Answer 2

Left

Question 3

Where there is lower demand for a product, there will be a …….. of a product

Answer 3

Surplus

Question 4

Supply there has to …….. to the new equilibrium price

Answer 4

Contract

Question 5

Where there is an increase in supply, the shift causes the price to……

Answer 5

Contract

Question 6

Therefore, demand has to ……. to the new equilibrium price

Answer 6

Extend

Question 7

Where there is a decrease in supply, the causes price too…..

Answer 7

Extend

Question 8

Therefore, demand has to ….. to the new equilibrium price

Answer 8

Contract