Suppose the demand curve for good Z is downward-sloping. If the price of good Z decreases because of a shift in supply, this will cause:
A)an increase in the demand for good Z.
B)a movement along the demand curve of good Z.
C)no effect on the quantity demanded of good Z.
D)fewer people to purchase good Z.

Question

Quizplus · Accepted Answer

A decrease in price due to a shift in supply will not change the demand for good Z, but it will cause a movement along the demand curve of good Z, resulting in an increase in quantity demanded. Therefore, the correct answer is B.

Suppose the Demand Curve for Good Z Is Downward-Sloping