Suppose that we illustrate demand and supply with quantity on the horizontal axis and price on the vertical axis. A change in price will cause a shift in the demand curve.

Question

Quizplus · Accepted Answer

A change in price would cause a movement along the demand curve, not a shift in the curve itself. Factors such as changes in consumer income or preferences, changes in the price of related goods, and changes in market size or demographics would cause a shift in the demand curve. A change in price would cause a movement along the demand curve, not a shift. Shifts in the demand curve are caused by changes in factors such as consumer income, preferences, or number of consumers.

Suppose That We Illustrate Demand and Supply with Quantity on the Horizontal