A change in the price of automobiles will cause a change in the demand for automobiles

Question

Quizplus · Accepted Answer

A change in the price of automobiles will cause a change in the quantity demanded, not in the demand itself. Demand refers to the willingness and ability of consumers to purchase goods at different prices, which is represented by the demand curve. A movement along the demand curve due to a price change is called a change in quantity demanded, not a change in demand. Changes in demand are caused by factors other than the price of the good itself, such as changes in consumer income, preferences, or prices of related goods.

A Change in the Price of Automobiles Will Cause a Change