According to the law of demand, a decrease in the price of a good causes
A) a rightward shift of the demand curve for that good.
B) a leftward shift of the demand curve for that good.
C) an upward movement along the demand curve for that good.
D) a downward movement along the demand curve for that good.

Question

Quizplus · Accepted Answer

According to the law of demand, there is an inverse relationship between the price of a good and the quantity demanded of that good. When the price of a good decreases, the quantity demanded of that good increases. Therefore, there is a movement along the demand curve, from a higher price-quantity combination to a lower price-quantity combination. This movement is downward along the demand curve.

According to the Law of Demand, a Decrease in the Price