1. Indicate whether the following statement is true or false and explain why. An increase in the price of bananas will shift the demand curve for bananas to the left.

The statement is **false**.<br /><br />### Explanation:<br />An increase in the price of bananas does not shift the demand curve for bananas; instead, it causes a **movement along the demand curve**. <br /><br />- The **demand curve** represents the relationship between the price of a good and the quantity demanded, holding all other factors constant (e.g., income, preferences, prices of related goods).<br />- When the price of bananas increases, consumers will typically buy fewer bananas, resulting in a **decrease in the quantity demanded**, but this is shown as a movement **upward along the same demand curve**, not a shift of the curve itself.<br /><br />A **shift in the demand curve** occurs only when there is a change in one of the non-price determinants of demand, such as:<br />- Changes in consumer income<br />- Changes in tastes or preferences<br />- Changes in the price of substitutes or complements<br />- Changes in population or demographics<br /><br />In summary, an increase in the price of bananas leads to a movement along the demand curve, not a shift to the left.