Which of the following statements about demand is correct?
A) A change in the price of bicycles will not lead to a shift of the demand curve for bicycles.
B) A change in the price of automobiles will lead to a shift of the demand curve for motorcycles.
C) A change in demand is equivalent to a movement along a given demand curve.
D) When price falls,so does the quantity demanded.
E) When the demand curve shifts to the right,so will the supply curve.

Question

Quizplus · Accepted Answer

A change in the price of bicycles will lead to a movement along the demand curve, not a shift. A shift in the demand curve is caused by factors other than the price of the good itself, such as changes in consumer preferences or income.

Which of the Following Statements About Demand Is Correct