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NABTEB Economics 2024 Objective — Question 11

Question 11 of 50 from the National Business and Technical Examinations Board (NABTEB) Economics 2024 Objective paper, with the correct answer and a full explanation.

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The movement from points x to z might have been caused by

Diagram for question 11
  • A. A. a change in taste in favour of milkCorrect
  • B. B. a decrease in price of milk
  • C. C. an increase in income of consumers
  • D. D. a favourable weather condition

Explanation

The movement from point X to Z is known as an expansion (extension) of demand and this occurs as a result of a decrease in the price of the commodity itself. However, a contraction is the opposite and it occurs as a result of an increase in the price of the commodity.

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