Question

Answer using: True or False, and Why?

2. If the price of a product decreases, then the demand curve shifts to the right.

3. When economists say the demand for a product has increased, they mean that consumers are willing and able to purchase more at any given price.

4. If the demand curve for product J shifts to the left as the price of product K decreases, then J and K are substitute goods.

Answer 1

2)True...... Because, The law of demand says that at higher prices, buyers will demand less of an economic good.So if prices decrease, demand will rise shifting the demand curve to the right.

3)True..... Because, increasing demand means increasing purchasing power of consumers.

4)True........... substitute goods are goods where you can consume one in place of the other. When the price of a substitute good decreases, the quantity demanded for that good increases, but the demand for the good that it is being substituted for decreases.