Question

Which of the following statements is FALSE about the demand​ curve?

A. An increase in demand shifts the demand curve to the​ left, closer to the price axis.

B. A change in demand is graphically shown by shifting the entire demand curve.

C. When demand​ decreases, there is a drop in the quantity demanded at each price.

D. When only the price of a good​ changes, there is movement along the demand curve but no change in demand.

Answer 1

Answer :

The statement which is FALSE is :

Option A) An increase in demand shifts the demand curve to the left, closer to the price axis.

This is a false statement since an increase in demand implies an increase in quantity demanded at any given price which means the demand curve should move outward or to the right, away from the price axis.

The other options (b , c, d) are all true since a change in demand is basically a shift in the demand curve wherein an increase in demand shifts the demand curve to the right while a decrease in demand shifts it to the left. Also since a demand curve shows a relationship of the quantity demanded at every given price so a change in own price only causes a movement along the given demand curve and doesn't result in shifting it.