A change in the price of a good changes a consumer's budget constraint and causes a shift of the demand curve.

Name: A change in the price of a good changes a consumer's budget constraint and causes a shift of the demand curve.
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Question

Quizplus · Accepted Answer

A change in the price of a good causes a movement along the demand curve, not a shift of the demand curve. A shift of the demand curve is caused by factors other than the price of the good itself, such as changes in income, preferences, or prices of related goods.

A Change in the Price of a Good Changes a Consumer's