Observe the given diagram and answer the following questions:[Figure: Price in ₹ on the Y-axis and quantity demanded in kgs on the X-axis. The original demand curve DD cuts the price line at P to give quantity OQ. At the same price P, a dotted demand…

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Q.5 (ii) Observe the given diagram and answer the following questions: [Figure: Price in ₹ on the Y-axis and quantity demanded in kgs on the X-axis. The original demand curve DD cuts the price line at P to give quantity OQ. At the same price P, a dotted demand curve D₁D₁ to the right gives a larger quantity OQ₁, and a dotted demand curve D₂D₂ to the left gives a smaller quantity OQ₂. Arrows show movement from Q to Q₁ and from Q to Q₂.] (1) Rightward shift in demand curve .......... (1) (2) Leftward shift in demand curve ........... (1) (3) Price remains ........ (1) (4) Increase and decrease in demand comes under........ (1)

Doubtly AI · Accepted Answer

Answer: (1) Increase in demand; (2) Decrease in demand; (3) constant (at OP); (4) changes in demand (shifts in the demand curve) (1) The shift from DD to D₁D₁ shows increase in demand: more (OQ₁) is demanded at the same price OP. (2) The shift from DD to D₂D₂ shows decrease in demand: less (OQ₂) is demanded at the same price OP. (3) Price remains constant at OP. (4) Increase and decrease in demand come under changes in demand, i.e. shifts of the demand curve caused by factors other than price (income, tastes, prices of related goods, etc.).

Observe the given diagram and answer the following questions:[Figure: Price in ₹ on the Y-axis and quantity demanded in kgs on the X-axis. The original demand curve DD cuts the price line at P to give quantity OQ. At the same price P, a dotted demand…

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