Suppose the accompanying graph depicts a hypothetical market for analog TVs. If the price of analog TVs increases, what will most likely happen to the quantity demanded, holding all else constant?

• A. The quantity demanded will increase.
• B. The quantity demanded will decrease.
• C. The demand curve will shift to the right.
• D. The quantity demanded will remain unchanged.

Answer: (B)

Verified step by step guidance

1. Recall the Law of Demand, which states that, ceteris paribus (holding all else constant), when the price of a good increases, the quantity demanded of that good decreases.
2. Understand that a change in the price of the good itself causes a movement along the demand curve, not a shift of the demand curve.
3. Identify that an increase in the price of analog TVs will lead to a movement upward along the demand curve, resulting in a lower quantity demanded.
4. Recognize that a shift of the demand curve (to the right or left) occurs only when factors other than the price of the good change, such as consumer income, tastes, or prices of related goods.
5. Conclude that the correct outcome when the price of analog TVs increases is a decrease in the quantity demanded, represented by a movement along the demand curve.