A reduction in the price of a product and an increase in the number of buyers in the market affect the demand curve in the same general way.

Question

Quizplus · Accepted Answer

A reduction in the price of a product typically moves along the demand curve, indicating a change in the quantity demanded, while an increase in the number of buyers shifts the entire demand curve to the right, indicating a change in demand. These are different effects on the demand curve.

A Reduction in the Price of a Product and an Increase