When there is a change in demand,
A) there is a rightward movement along the demand curve
B) there is a leftward movement along the demand curve
C) there is a shift of the supply curve
D) changes in price lead to different changes in quantity demanded
E) there is a shift of the demand curve

Question

Quizplus · Accepted Answer

A change in demand means that there has been a shift in the entire demand curve. This can be caused by factors such as a change in consumer preferences, income levels, or the availability of substitutes. A shift to the right means an increase in demand, while a shift to the left means a decrease in demand. Movement along a demand curve, on the other hand, is caused by a change in price and leads to a change in quantity demanded. Therefore, the correct choice is E, there is a shift of the demand curve.

When There Is a Change in Demand