When the price of a good or service changes,

Question

Quizplus · Accepted Answer

When the price of a good or service changes, there is a movement along a given demand curve. This is because the quantity demanded of a good or service changes in response to changes in price, while factors other than price remain constant, causing a change in quantity demanded along the same demand curve. The supply curve, on the other hand, represents the quantity supplied of a good or service at different prices, and changes in the price of a good or service do not affect the quantity supplied along the same supply curve. Therefore, choices A and B are incorrect, and choice C is not an accurate reflection of what happens when the price of a good or service changes.

When the Price of a Good or Service Changes