Changes in the price of a product can cause
A)A movement along the demand curve
B)A shift of the demand curve
C)A shift of the supply curve
D)All of the above

Question

​Changes in the price of a product can cause
A)​A movement along the demand curve
B)A shift of the demand curve
C)A shift of the supply curve
D)​All of the above

Quizplus · Accepted Answer

Changes in the price of a product result in movements along the demand curve. When the price of a product increases, the quantity demanded of that product decreases, resulting in a movement up along the demand curve. Similarly, when the price of a product decreases, the quantity demanded of the product increases, resulting in a movement down along the demand curve. Shifts of the demand curve occur due to changes in factors other than the product's price, such as changes in consumer income or preferences. Changes in the supply curve occur due to changes in factors that affect the willingness and ability of producers to produce and supply the product, such as technology or input costs.

​Changes in the Price of a Product Can Cause

Changes in the Price of a Product Can Cause