A decrease in the price of a particular good,with all other variables constant,causes
A) a shift to a different demand schedule with higher quantities demanded
B) a shift to a different demand schedule with lower quantities demanded
C) a movement along a given demand curve to a lower quantity demanded
D) a movement along a given demand curve to a higher quantity demanded
E) no movement along a given demand curve unless supply also changes

Question

Quizplus · Accepted Answer

This is because a decrease in price leads to a lower cost of the good which in turn leads to an increase in quantity demanded, resulting in a movement along the same demand curve to a higher quantity demanded.

A Decrease in the Price of a Particular Good,with All