A change in price is reflected by a movement along the same demand curve while a change in demand refers to a shift of the entire demand curve.

Question

Quizplus · Accepted Answer

This statement is correct. A change in price will lead to a movement along the same demand curve, i.e., a change in quantity demanded. On the other hand, a change in any other factor affecting demand such as income, tastes and preferences, price of related goods, etc., will shift the entire demand curve, i.e., a change in demand.

A Change in Price Is Reflected by a Movement Along