Question

If the cost of making bicycles falls, the price goes down, causing the demand curve to shift to the right.
True or False​

Answer 1

Answer:

If the cost of making bicycles falls, the price goes down, causing the demand curve to shift to the right. False. The lower price of bicycles resulting from cost reductions does make more people purchase bicycles, but this effect is reflected by a movement along the demand curve.

Answer 2

Answer:

If the cost of making bicycles falls, the price goes down, causing the demand curve to shift to the right. (True)