Changes in the price of a good lead to:

Question

Quizplus · Accepted Answer

Changes in the price of a good lead to a movement along the supply curve, resulting in changes in the quantity supplied. This is because suppliers are responsive to changes in price – as price increases, they are willing to produce and sell more of the good, and vice versa. Changes in supply, on the other hand, are caused by factors like changes in production costs or technology, and shift the entire supply curve. Changes in demand are caused by factors like changes in consumer preferences or income, and shift the entire demand curve. The price of a good has no direct effect on the level of demand, and therefore cannot cause changes in demand.

Changes in the Price of a Good Lead To