consider in the graph to the right the demand curve for bananas. the movement from point a to point b could…
consider in the graph to the right the demand curve for bananas. the movement from point a to point b could have been caused by\na. a decrease in the price of bananas.\nb. an increase in the price of oranges.\nc. a change in consumer tastes.\nd. an increase in the price of bananas.
Answer
Brief Explanations:
A movement along the demand curve is caused by a change in the price of the good itself. When the price of bananas changes, there is a movement along the demand - curve for bananas. A decrease in the price of bananas leads to a downward movement along the demand curve (from point A to point B in this case), as more is demanded according to the law of demand. Changes in the price of oranges or consumer tastes would shift the entire demand curve, not cause a movement along it.
Answer:
A. a decrease in the price of bananas