Suppose the price level is measured along the vertical axis on a graph. When the price level changes, there will be a
A)rotation of the curve.
B)shift of the curve.
C)movement along the curve.
D)change in the slope of the curve.

Question

Quizplus · Accepted Answer

A change in the price level, when plotted on a graph with the price level on the vertical axis, results in a movement along the curve, not a shift or rotation of the curve or a change in its slope. This is because the curve itself represents a relationship at various price levels, so a change in price moves the point of observation along the existing curve.

Suppose the Price Level Is Measured Along the Vertical Axis