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