Question

In the above diagram, the demand for pepper is an example of price __________.

Answer 1

Answer:

Option “B” Shifting is correct answer.

Explanation:

Option B is correct because the demand curve shifts leftwards when the price is increasing or shifting upwards. However. When price remains constant, in that case, there is a parallel shift in the demand curve. The parallel shift may occur leftwards or rightwards because it depends on other factors except for the price. But in the given graph, the upward-pointing arrow shows an increase in price and a decrease in quantity. Accordingly, the given case is an example of Price Shifting.

Answer 2

Answer:

B.  shifting

Explanation:

In any market, the price can be studied in two perspectives. That of the buyer, who uses it as a reference of potential utility, and that of the seller, for the one or which means first a guide of the possible income of his activities and, secondly, the method by which he converts them into profits.

From this point of view there are several concepts that should be kept in mind: price of offer, or price at which the seller offers his merchandise. Demand price is what a consumer is willing to pay. Market price or observed prices are the prices at which real purchases took place.

In a theoretical situation -free market- the price would be fixed by the law of supply and demand.In the case of a monopoly the price "is on each occasion the highest that can be squeezed out of the buyers, or the one that , it is supposed, they will consent to give. "

In a real situation - of imperfect competition - prices are determined through other mechanisms, such as the maximization of marginal income (see also oligopoly, oligopsony, monopolistic competition, Stackelberg competition, web theorem, etc.)