Which of the following illustrates a shift in the demand curve?
A) When prices remain the same, there is a significant decrease in demand.
B) As the price is raised, the quantity demanded increases, assuming all else stays the same.
C) When prices remain the same, there is an increase or decrease in demand.
D) As the price is lowered, the quantity demanded decreases, assuming all else stays the same.
E) Movement along the curve indicates that some significant event has taken place outside the organization that has affected demand.

Question

Quizplus · Accepted Answer

A shift in the demand curve occurs when there is an increase or decrease in demand at every price level, not just a change in the quantity demanded due to a change in price (as in choices B and D). Choice A describes a decrease in quantity demanded but does not indicate if it is a shift in the demand curve or just a change in quantity. Choice E describes a movement along the curve, which is not a shift in the demand curve but rather a change in quantity demanded due to a change in price.

Which of the Following Illustrates a Shift in the Demand