Which of the following statements is FALSE?
A) If there is an increase in the demand for a product, consumers want to buy more of the product at each and every possible price.
B) A decrease in demand shifts the demand curve leftward toward the origin, while a decrease in quantity demanded involves a movement upward along a particular demand curve.
C) If the price of a good rises, quantity demanded of the good decreases and the demand curve shifts toward the origin as long as supply is static.
D) A change in the demand for a product is caused by factors other than changes in the product's price.

Question

Quizplus · Accepted Answer

C is false because if the price of a good rises, the quantity demanded of the good decreases, which is represented by a movement upward along the demand curve, not a shift of the demand curve itself. The demand curve shifts only when there are changes in non-price determinants of demand, such as consumer preferences, income, prices of related goods, etc.

Which of the Following Statements Is FALSE