When the price of a good falls, there will be
A) an outward shift in the good's demand curve.
B) both an outward shift in the good's demand curve and a movement along the good's demand curve.
C) a movement along the good's demand curve.
D) no change in quantity demanded.

Question

Quizplus · Accepted Answer

When the price of a good falls, there will be a movement along the good's demand curve. This means that the quantity demanded of the good will increase, but the demand curve itself will not shift outward or inward. An outward shift in the demand curve would happen due to factors other than price, such as changes in consumer taste or income, or the availability of substitutes.

When the Price of a Good Falls, There Will Be