Other things being equal, the effect of an increase in the price of orange juice would be illustrated by
A) an upward movement along the demand curve for orange juice.
B) a leftward shift in the demand curve for orange juice.
C) a downward movement along the demand curve for orange juice.
D) a rightward shift in the demand curve for orange juice.

Question

Quizplus · Accepted Answer

An increase in the price of orange juice would lead to a decrease in the quantity demanded of orange juice, causing a movement along the demand curve towards a lower quantity demanded at each price. This is illustrated by an upward movement along the demand curve, which shows the relationship between price and quantity demanded while holding other factors constant. Therefore, the correct answer is (A) an upward movement along the demand curve for orange juice.

Other Things Being Equal, the Effect of an Increase in the Price