FIGURE 12-5
-Figure 12-5 above shows that when the price moves from $2.00 to $1.50 per unit, the quantity demanded increases from 3 million to 4.5 million.This is an example of a
A)shift of demand curve.
B)scaling back a demand curve.
C)price elasticity curve.
D)price inelasticity curve.
E)movement along a demand curve.

Question

FIGURE 12-5 
-Figure 12-5 above shows that when the price moves from $2.00 to $1.50 per unit, the quantity demanded increases from 3 million to 4.5 million.This is an example of a
A)shift of demand curve. 
B)scaling back a demand curve. 
C)price elasticity curve. 
D)price inelasticity curve. 
E)movement along a demand curve.

Quizplus · Accepted Answer

The movement of quantity demanded along a demand curve in response to a change in price is known as price elasticity. In this case, the increase in quantity demanded from 3 million to 4.5 million as the price decreases from $2.00 to $1.50 represents a movement along a demand curve.

FIGURE 12-5 -Figure 12-5 Above Shows That When the Price Moves from Price