Sarah is studying the demand curve for her product range. As marketing manager for Lean Cuisine frozen meals she is aware of the relationship between price and the demand for her products. Sarah understands that a change in the quantity demanded of her products due solely to a change in their price will result in:
A) movement along the demand curve.
B) there will be a shift of the demand curve to the left.
C) there will be a shift of the demand curve to the right.
D) no movement along the demand curve.
E) None of the options listed.

Question

Quizplus · Accepted Answer

analyse demand to inform the development of an appropriate pricing strategy. On a demand curve, the relationship between price and quantity demanded is based on all other factors remaining constant. This means that the demand curve represents only those changes in demand related to changes in price. A change in demand due solely to a change in price is known as a movement along the demand curve.

Sarah Is Studying the Demand Curve for Her Product Range