The demand curve shows how the quantity demanded is related to the price. A change in other variables will:

Question

Quizplus · Accepted Answer

A change in other variables, such as income or the price of related goods, will cause a shift in the entire demand curve rather than a movement along the curve. For example, an increase in income will shift the demand curve for normal goods to the right, while a decrease in income will shift the demand curve for inferior goods to the left.

The Demand Curve Shows How the Quantity Demanded Is Related