Asked by Shanti Jones on May 07, 2024
Verified
Which statement is CORRECT?
A) A change in demand is a movement along the demand curve,and a change in quantity demanded is a shift of the demand curve.
B) Both a change in quantity demanded and a change in demand are movements along the demand curve,only in different directions.
C) Both a change in quantity demanded and a change in demand are shifts of the demand curve,only in different directions.
D) A change in quantity demanded is a movement along the demand curve,and a change in demand is a shift of the demand curve.
Demand Curve
A graph depicting the relationship between the price of a good and the quantity demanded by consumers.
Quantity Demanded
The complete quantity of a product or service that buyers are ready and capable of buying at a certain price during a designated time frame.
- Distinguish between movements along the demand curve and shifts of the demand curve.
Verified Answer
CP
Colton PalmerMay 12, 2024
Final Answer :
D
Explanation :
A change in quantity demanded is caused by a change in price, and therefore is a movement along the demand curve. A change in demand is caused by factors other than price, such as changes in income or the availability of substitutes, and therefore causes a shift of the demand curve.
Learning Objectives
- Distinguish between movements along the demand curve and shifts of the demand curve.