Consumers' incomes rise for a normal good at the same time as the good's own price falls. How should these changes be shown on a demand diagram?
Demand shifts right because of higher income, followed by a movement down along the new curve because of the lower price
Demand shifts left because of higher income, followed by a movement up along the new curve
Only a movement down along the original curve is shown because both changes affect quantity demanded
Only a rightward shift is shown because a price change cannot cause movement along a demand curve
41 exam-style questions on OCR GCSE Economics 2.2 Demand, covering 2.2.1 What is demand, 2.2.2 Draw a demand curve using data, 2.2.3 Explain a demand curve, 2.2.4 Shifts and movements of the demand curve, 2.2.5 Causes and consequences of demand changes, 2.2.6 Price elasticity of demand, 2.2.7 Draw demand curves of different elasticity, and 2.2.8 Importance of price elasticity of demand. Each one has a worked solution and a mark scheme showing where the marks go.