Summary Questions (contd.)

 

 

 

 

2.   This question relates to the demand for tea – match each situation with the appropriate statement relating to demand. This question continues on the following pages…

 

 

There is an increase in the rate of income tax

 

1: There is a movement along the demand curve, and the quantity demanded will increase

2: There is a movement along the demand curve, and the quantity demanded will decrease

3: The demand curve shifts to the right and more is demanded at each price

4: The demand curve shifts to the left and less is demanded at each price