Economics (AS & A Level) · Oct / Nov 2025 · Paper 13 · Question 7
Market demand curves normally slope downwards. They may also shift from D1 to either D2 or D3. [diagram: price of good X against quantity demanded, with three downward-sloping demand curves D1, D2 and D3] What would cause a movement along D1 for good X and not a shift to either D2 or D3?
- Aadvertising of good X increases sales
- Bconsumer incomes rise
- Cthe price of good X falls
- Dthe prices of other goods fall
As printed in the paper
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Correct answer: C. the price of good X falls
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