An increase in the price of ice cream is likely to cause:

Question

Quizplus · Accepted Answer

An increase in the price of ice cream would lead to a decrease in the quantity demanded (law of demand), resulting in a movement along the demand curve. An inward shift of the demand curve would occur if there was a decrease in consumer income or a change in consumer preferences that makes them less interested in ice cream. An outward shift of the demand curve would occur if there was an increase in consumer income or a change in consumer preferences that makes them more interested in ice cream. A rotation of the demand curve around the price-point change does not occur in response to a price change alone; it typically involves a change in multiple factors affecting demand.

An Increase in the Price of Ice Cream Is Likely