Which of the following statements is CORRECT?
A)A change in demand is a movement along the demand curve, and a change in quantity demanded is a shift of the demand curve.
B)Both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.
C)Both a change in quantity demanded and a change in demand are shifts of the demand curve, only in different directions.
D)A change in quantity demanded is a movement along the demand curve, and a change in demand is a shift of the demand curve.

Question

Quizplus · Accepted Answer

A change in demand is caused by a shift of the entire demand curve, which can be caused by factors such as changes in consumer income or preferences. Meanwhile, a change in quantity demanded is caused by a movement along the demand curve, which occurs when the price of the good or service changes. Therefore, option D correctly describes the meanings of these terms.

Which of the Following Statements Is CORRECT