Question

Consider a demand curve for peaches. Which of the following movements will be observed if the priceof peaches decline at a point in time?

a.The demand curve will rotate inward at the given price level.
b.The will be a movement up along the demand curve.
c.The demand curve will rotate outward at the given price level

Answer 1

There will be a movement downward movement along the demand curve.

Step-by-step explanation:

If the price of peaches falls, the quantity demanded increases. This is in accordance to the law of demand which says, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

A fall in price would increase demand which would lead to a movement down the demand curve.

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