Figure 3-2
-Refer to Figure 3-2.A decrease in the price of the product would be represented by a movement from
A)A to B.
B)B to A.
C)S1 to S2.
D)S2 to S1.

Question

Figure 3-2 
-Refer to Figure 3-2.A decrease in the price of the product would be represented by a movement from
A)A to B. 
B)B to A. 
C)S1 to S2. 
D)S2 to S1.

Quizplus · Accepted Answer

A decrease in price would cause an increase in quantity demanded, leading to a movement along the demand curve from point A to point B. There is no mention of a change in supply, so choices C and D, which involve shifts in the supply curve, are not applicable.

Figure 3-2 -Refer to Figure 3-2.A Decrease in the Price of the Price