Multiple Choice
Which of the following shifts the money demand curve to the right?
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3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
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A decrease in demand is represented by a:
A
rightward shift of the demand curve
B
movement down along the demand curve
C
movement up along the demand curve
D
leftward shift of the demand curve
Verified step by step guidance1
Understand that a demand curve shows the relationship between the price of a good and the quantity demanded at those prices.
Recognize that a 'movement along the demand curve' occurs when there is a change in quantity demanded due to a change in the price of the good itself, holding other factors constant.
Identify that a 'shift of the demand curve' happens when factors other than the price of the good change, such as consumer income, preferences, or prices of related goods.
Recall that a decrease in demand means consumers want to buy less of the good at every price, which causes the entire demand curve to shift to the left.
Therefore, a decrease in demand is represented by a leftward shift of the demand curve, not by movements along the curve or a rightward shift.
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