An increase in the price of good x will be accompanied by:
A)a shift in the market demand curve for good x.
B)a shift in the market demand curve for good y (a substitute for good x).
C)a movement along the market demand curve for good x.
D)both b and c

Question

Quizplus · Accepted Answer

An increase in the price of good x does not shift its own demand curve but causes a movement along the demand curve (choice C). It can also shift the demand curve for a substitute good y, as consumers may switch to buying more of good y (choice B).

An Increase in the Price of Good X Will Be