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Question
State whether the following statement is true or false. Give reasons.
A change in quantity demanded as a result of price change will imply a shift of the demand curve to the right.
Options
True
False
Solution
This statement is false.
Explanation:
No, a shift in the demand curve indicates a change in demand due to reasons other than price. It will a shift to the right if demand increases, and to the left if demand decreases.
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