Question

If the price of a good increases, _____________. The demand curve _________________ . If the number of buyers in the market increases, ________________. The demand curve ____________.

Answer 1

1. Quantity demanded decreases

2. Shift to the left

3. Quantity demanded increases

4. Shift to the right

Step-by-step explanation:

If the price of a good increases, QUANTITY DEMANDED DECREASES, The demand curve SHIFT TO THE LEFT.

If the number of buyers in the market increases, QUANTITY DEMANDED INCREASES. The demand curve SHIFT TO THE RIGHT.

This is based on the law of demand which states under normal circumstances, the lower the price, the higher the quantity demanded, and the higher the price, the lower the quantity demanded.

A demand curve moves to the right when there is an increase in quantity demanded, while the demand curve also moves to the left when there is a decrease in quantity demanded.