-Refer to the above figure. Which panel shows the effect of an increase in the price of a good on the demand curve of that good?
A) Panel A
B) Panel B
C) both panels
D) neither panel

Question

-Refer to the above figure. Which panel shows the effect of an increase in the price of a good on the demand curve of that good?
A) Panel A 
B) Panel B 
C) both panels 
D) neither panel

Quizplus · Accepted Answer

An increase in the price of a good does not shift the demand curve itself; instead, it results in a movement along the demand curve. Neither panel shows a shift in the demand curve, which would represent a change in demand.

-Refer to the Above Figure