Multiple Choice
Which of the following factors causes a movement along the demand curve?
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3. The Market Forces of Supply and Demand
Movement Along a Demand Curve
Multiple Choice
In microeconomics, when we move along a given demand curve for a good, what is changing?
A
The entire demand curve shifts because consumer income changes (a change in demand).
B
The entire demand curve shifts because tastes and preferences change (a change in demand).
C
The supply curve shifts because input prices change.
D
The quantity demanded changes in response to a change in the good’s own price (a change in quantity demanded).
Verified step by step guidance1
Understand the difference between a 'change in demand' and a 'change in quantity demanded'. A change in demand means the entire demand curve shifts due to factors like income or tastes, while a change in quantity demanded means movement along the same demand curve due to price changes.
Identify that moving along a given demand curve implies the demand curve itself does not shift; instead, the quantity demanded varies as the price of the good changes.
Recall that factors such as consumer income or preferences cause the demand curve to shift, representing a change in demand, not movement along the curve.
Recognize that a change in the supply curve is unrelated to movements along the demand curve and is caused by factors like input prices.
Conclude that when moving along a given demand curve, the variable changing is the quantity demanded in response to the good's own price, which is called a change in quantity demanded.
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