The effect of changes in the condition of deman... - JAMB Economics 1995 Question
The effect of changes in the condition of demand on a demand schedule with the price constant is?
A
A movement along the demand curve
B
deflation of the demand curve
C
hyperbola formation by the demand curve
D
shift of the demand curve
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Correct Option: D
The correct answer is D, a shift of the demand curve. Here's why:
- Changes in the conditions of demand (e.g., changes in consumer income, tastes, prices of related goods, or expectations) lead to a change in the quantity demanded at every price level.
- When the price remains constant, but the quantity demanded changes due to one of these factors, it causes the entire demand curve to shift either to the right (increase in demand) or to the left (decrease in demand).
- A movement along the demand curve (option A) happens due to a change in the price of the good itself, which is not the case here.
- Options B and C are not standard economic concepts related to demand curve behavior.
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