The impact of an increase in the price of a particular good is illustrated as a
A) leftward shift in its demand curve.
B) rightward shift in its demand curve.
C) movement upward and to the left along its demand curve.
D) movement downward and to the right along its demand curve.
E) rightward shift in its demand curve and a movement upward and to the left along its demand curve.

Question

Quizplus · Accepted Answer

An increase in the price of a particular good leads to a movement upward and to the left along its demand curve. This is because as the price of the good increases, the quantity demanded of it decreases, leading to a movement along the demand curve. The direction of the movement is upward and to the left because price is measured on the vertical axis and quantity demanded is measured on the horizontal axis.

The Impact of an Increase in the Price of a Particular