Question

question 26 (2 points)
consider the market for cellular phones. which of the following shifts the demand curve leftward?
studies showing using cellular phones can cause brain cancer
a decrease in the price of cellular phones
a decrease in the quantity demanded of cellular phones
an increase in the services provided by cellular phones, such as text messaging
an increase in the price of cellular phones

Explanation:

• For "studies showing using cellular phones can cause brain cancer":
• This affects consumer preferences. If consumers believe cellular phones are harmful (due to the study), their demand for cellular phones will decrease at every price level. A decrease in demand at every price level is represented by a left - ward shift of the demand curve.
• For "a decrease in the price of cellular phones":
• According to the law of demand, a decrease in the price of a good (cellular phones in this case) leads to an increase in the quantity demanded. This is a movement along the demand curve (down - ward movement), not a shift of the demand curve.
• For "a decrease in the quantity demanded of cellular phones":
• This is a result of a change in price (movement along the demand curve) or other non - price factors (which would cause a shift). But just stating a decrease in quantity demanded does not explain a shift. A shift is about the entire relationship between price and quantity demanded at all price levels.
• For "an increase in the services provided by cellular phones, such as text messaging":
• This would increase the desirability of cellular phones. An increase in desirability (an improvement in consumer preferences) would lead to an increase in demand at every price level, which is represented by a right - ward shift of the demand curve.
• For "an increase in the price of cellular phones":
• According to the law of demand, an increase in the price of a good leads to a decrease in the quantity demanded. This is a movement along the demand curve (up - ward movement), not a shift of the demand curve.

Answer:

studies showing using cellular phones can cause brain cancer