A fundamental principle in demand analysis is that a change in price leads to
A) a movement along the demand curve.
B) a rightward shift of the demand curve.
C) a leftward shift of the demand curve.
D) a complementary movement on the supply curve.

Question

Quizplus · Accepted Answer

A change in price leads to a movement along the demand curve, also known as a change in quantity demanded. This is because price is one of the determinants of quantity demanded, along with factors like consumer income, price of related goods, and consumer tastes and preferences. A change in any of these other determinants would result in a shift in the demand curve, but a change in price only affects quantity demanded along the existing demand curve.

A Fundamental Principle in Demand Analysis Is That a Change