With reference to the difference between a change in demand and a change in quantity demanded, which of the following is TRUE?
A) If a good's price goes down, then demand for the good will decrease.
B) If a good's price goes down, then quantity demanded will increase.
C) If demand increases, then the demand curve will shift to the left.
D) If price rises and quantity demanded decreases, then the demand curve will shift to the left.

Question

Quizplus · Accepted Answer

A change in quantity demanded refers to a movement along the demand curve due to a change in price, while a change in demand refers to a shift of the entire demand curve due to a change in factors other than price. Therefore, if a good's price goes down, it leads to a movement along the demand curve, resulting in an increase in quantity demanded.

With Reference to the Difference Between a Change in Demand