Which of the following would cause the demand curve for rice
Which of the following would cause the demand curve for rice to shift to the left?
a) A rise in the price of rice.
b) A blight that destroyed 75% of the rice harvest.
c) A report claiming that the starch in rice causes heart disease.
d) A tariff that doubles the price of imported spaghetti.
Solution
C) A report claiming that the starch in rice causes heart disease would result in decline in demand of rice, thus it will shift the demand curve to the left.
all others are incorrect.
a) a rise in price might not result in decline in demand because rice is basic food neccessity.
b) Blight might not also decline the demand.
d) It will not also decline the demand for rice.
