Imagine that the price of apples rises. How is demand affected?

Question

BlackTom AI · Accepted Answer

When the price of apples rises, quantity demanded falls — this is a contraction in demand (movement along the demand curve).

1. Relevant knowledge points and concepts
- Law of demand: ceteris paribus, as price increases, quantity demanded decreases.
- Distinction between "movement along the demand curve" (change in quantity demanded due to a price change) and a "shift of the demand curve" (change in demand caused by non-price factors such as income, tastes, or prices of substitutes).

2. Step-by-step reasoning
- Start with the price rise: price is a variable on the vertical axis of the demand curve.
- Because only price changed (no change in income, tastes, etc.), consumers buy less at the higher price.
- That reduced purchase is represented by moving up and leftward along the same demand curve — called a contraction in quantity demanded.

3. Example calculation (intermediate steps)
- Suppose at $1 per apple Qd = 100 apples; at $2 per apple Qd = 70 apples.
- Change in quantity demanded = 70 − 100 = −30 apples.
- Percentage change = (−30 / 100) × 100% = −30% (a contraction in quantity demanded).

4. Why the correct answer is correct
- Option b (“Demand will contract”) correctly describes a decrease in quantity demanded caused by the price rise — a movement along, not a shift of, the demand curve. In standard terminology this is called a contraction (when price rises) or expansion (when price falls).

5. Why the other options are incorrect
- a. “Demand curve will shift rightward” is incorrect: a rightward shift indicates an increase in demand from non-price factors, not a response to a price increase.
- c. “Demand will decrease” is ambiguous: it often implies a leftward shift (a change in demand), whereas the price change actually causes a contraction in quantity demanded along the same curve.
- d. “Demand curve will shift leftward” is incorrect: a leftward shift requires changes in non-price determinants, not a change in the good’s own price.

6. Conclusion
- The correct choice is b. Demand will contract, which matches the provided answer.

Imagine that the price of apples rises. How is demand affected?单项选择题

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