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Multiple Choice
A change in quantity demanded can be described as:
A
a shift of the demand curve resulting from changes in tastes and preferences
B
a movement along the supply curve due to a change in the good's own price
C
a shift of the demand curve caused by changes in consumer income
D
a movement along the demand curve due to a change in the good's own price
Verified step by step guidance
1
Understand the difference between 'change in quantity demanded' and 'change in demand'. A 'change in quantity demanded' refers to movements along the same demand curve, while a 'change in demand' refers to shifts of the entire demand curve.
Recall that a movement along the demand curve happens when the price of the good itself changes, causing consumers to buy more or less of the good at different prices.
Recognize that shifts in the demand curve occur due to factors other than the good's own price, such as changes in tastes and preferences or changes in consumer income.
Identify that a 'movement along the supply curve' relates to supply, not demand, so it is not relevant to changes in quantity demanded.
Conclude that the correct description of a change in quantity demanded is a movement along the demand curve due to a change in the good's own price.