A decrease in demand is shown by which of the following changes to the demand curve?

• A. A leftward shift of the demand curve
• B. A rightward shift of the demand curve
• C. A movement down along the demand curve
• D. A movement up along the demand curve

Answer: (A)

Verified step by step guidance

1. Understand that the demand curve shows the relationship between the price of a good and the quantity demanded at each price.
2. Recognize that a change in demand means the entire demand curve shifts, either to the right or to the left, rather than movement along the curve.
3. Recall that a decrease in demand means consumers want to buy less of the good at every price, which causes the demand curve to shift to the left.
4. Distinguish this from movements along the demand curve, which occur only when the price changes and the demand curve itself remains fixed.
5. Conclude that a decrease in demand is represented by a leftward shift of the demand curve.