Which of the following best describes demand?
A)A change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve.
B)A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve.
C)Both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.
D)Both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.

Question

Quizplus · Accepted Answer

Demand refers to the willingness and ability of consumers to purchase goods and services at different prices. A change in quantity demanded refers to a movement along the demand curve as a result of a change in the price of the good or service. However, a change in demand refers to a shift in the demand curve caused by a change in factors such as income, tastes, preferences or price of other related goods or services. Hence, option B accurately describes the difference between changes in demand and changes in quantity demanded.

Which of the Following Best Describes Demand