Which best summarizes how consumer demand changes along the demand curve?

• A. As the price of a good decreases, the quantity demanded increases.
• B. As the price of a good decreases, the quantity demanded decreases.
• C. As the price of a good increases, the quantity demanded increases.
• D. As the price of a good increases, the quantity demanded remains unchanged.

Answer: (A)

Verified step by step guidance

1. Understand the law of demand, which states that there is an inverse relationship between the price of a good and the quantity demanded, holding all else constant.
2. Recognize that along a demand curve, when the price of a good decreases, consumers are willing and able to purchase more of that good, leading to an increase in quantity demanded.
3. Conversely, when the price of a good increases, the quantity demanded decreases because the good becomes relatively more expensive and less attractive to consumers.
4. Note that this relationship is represented graphically by a downward-sloping demand curve, where the price is on the vertical axis and quantity demanded is on the horizontal axis.
5. Therefore, the best summary of how consumer demand changes along the demand curve is: as the price of a good decreases, the quantity demanded increases.