Question

28. Which of the following factors would result solely in a movement along the demand curve for a particular good?

A) a change in the prices of related goods

B) a change in the price of that good

C) a change in the size of the population

D) both a change in the price of that good and a change in the size of the population

Answer 1

A change in the price of the good.

( A demand curve shows the relationship between price and quantity demanded. It's negative relationship. If price decreases, quantity demanded will increase. If price increases, quantity demanded will decrease. Change in price and corresponding change in quantity demanded is reflected in the form of movement along the demand curve. If price decreases and quantity demanded Increases, there will be a movement along the demand curve in downward direction. If price increases and quantity demanded falls, there will be an upward movement along the demand curve.

Note: change in any determinant other than price like price of related commodity, size of the population etc leads to a shift in demand curve not movement along the curve. )