Question

In the above diagram, the demand for pepper is an example of price __________.

A.
elasticity
B.
shifting
C.
inelasticity
D.
controlling


Please select the best answer from the choices provided

A
B
C
D

Answer 1

B. shifting

Explanation:

When the price is rising or shifting higher, the demand curve moves to the left. But, t here is a corresponding change in the demand curve in that scenario while the cost stays unchanged. Since it relies on variables other than price, the simultaneous shift might go either left or right. However, the upward-pointing line depicts a rise in price and a fall in supply.