Question

Read the statement below carefully, and decide whether it is true or false. And then EXPLAIN your answer (whether “true “ or “false”).

A straight line or curve can shift when a factor not included on the vertical axis or horizontal axis changes.

Answer 1

Answer is true

When the factors that are on horizontal or on the vertical axis changes then we move along the curve.

For example , the demand curve is drawn between prices ( along vertical axis) & quantities ( horizontal axis)

If price or quantity changes, we move along the demand curve only.

No shifting happens, as if prices fall , we move along the downward direction

But if income changes, ( not present on any axis) , which is the parameter, then the demand curve shifts