If the price of a good rises, this will cause:

• A. the demand curve to shift to the left
• B. an increase in quantity demanded
• C. a movement up along the demand curve, resulting in a decrease in quantity demanded
• D. the demand curve to shift to the right

Answer: (C)

Verified step by step guidance

1. Understand the difference between a 'shift' of the demand curve and a 'movement along' the demand curve. A shift means the entire demand curve moves left or right due to factors other than the good's own price, such as income or preferences.
2. Recognize that a change in the price of the good itself does not shift the demand curve but causes a movement along the existing demand curve.
3. Recall the law of demand: when the price of a good rises, the quantity demanded decreases, which corresponds to moving upward along the demand curve.
4. Identify that a movement up along the demand curve means moving to a point with a higher price and lower quantity demanded, not a shift of the curve.
5. Conclude that the correct description of the effect of a price increase is a movement up along the demand curve, resulting in a decrease in quantity demanded.