Multiple Choice
Which of the following variables, when changed, will cause the market demand curve for a product to shift?
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3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
Multiple Choice
A rightward shift of a demand curve is called a(n):
A
decrease in demand
B
increase in demand
C
change in quantity demanded
D
movement along the demand curve
Verified step by step guidance1
Understand the difference between a 'shift' of the demand curve and a 'movement along' the demand curve. A movement along the demand curve happens when the price changes, affecting quantity demanded, but the demand curve itself does not move.
Recognize that a 'shift' of the demand curve means the entire curve moves either to the right or to the left, indicating a change in demand at every price level, not just a change in quantity demanded due to price.
A rightward shift of the demand curve means that at every price, consumers are willing to buy more of the good than before, which is called an 'increase in demand'.
A leftward shift would indicate a decrease in demand, meaning consumers want less of the good at every price.
Therefore, the term for a rightward shift of the demand curve is 'increase in demand', distinguishing it from a movement along the curve or a decrease in demand.
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