The figure above shows the market for iPhones. Which of the following creates a movement from point A to point B?

Question

Quizplus · Accepted Answer

A decrease in the price of iPodsiPhones creates a movement along the demand curve from point A to point B. This is because at a lower price, more consumers are willing and able to buy the product, increasing the quantity demanded. Option A is incorrect because a decrease in the price of Zunes, a substitute, would shift the demand curve for iPodsiPhones leftward, decreasing the quantity demanded at each price and moving the equilibrium point. Option B is incorrect because an increase in people's incomes would shift the demand curve for iPodsiPhones rightward, increasing the quantity demanded at each price and moving the equilibrium point. Option D is incorrect because an increase in the price of iPodsiPhones would cause a movement along the demand curve, but in the opposite direction, from point B to point A, decreasing the quantity demanded. Option E is incorrect because a requirement that all students have an iPod would not necessarily affect the demand curve or the equilibrium point in the market for iPhones.

The Figure Above Shows the Market for IPhones