Ayushi posted an Question
August 25, 2020 • 03:20 am 30 points
  • UGC NET
  • Economics

11. a changc in climatic conditions resulting in hot weather, prices remaining th same, would cause a consumer of cold drinks (1) to move to a lower demand curv

11. A changc in climatic conditions resulting in hot weather, prices remaining th same, would cause a consumer of cold drinks (1) to move to a lower demand curve (2) to move to a higher demand curve (3) to move up the same demand curve 4) to move lower down the demand curve

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    Nidhi taparia Best Answer

    Option (2) is right. Please not the difference between movement across the demand curve and shifts in demand curve. When quantity demanded changes due to changes in price, we move across the same demand curve. This is called expansion or contraction of demand. But when quantity demanded changes due to factors other than price (like in this case tastes and preferences due to weather), demand curve itself shifts or the consumer moves to a different demand curve. This is called increase or decrease in demand.

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