When quantity demanded decreases in response to a change in price: A. the demand curve shifts to the right B. the demand curve shifts to the left C. there is a movement down along the demand curve D. there is a movement up along the demand curve

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Business

Fernanda Love

8 October, 17:20

When quantity demanded decreases in response to a change in price: A. the demand curve shifts to the right B. the demand curve shifts to the left C. there is a movement down along the demand curve D. there is a movement up along the demand curve

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Answers (1)

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Kendall Mcneil · Answer 1

The correct answer is option D.

Explanation:

An increase in the price of the commodity causes its quantity demanded to decrease. This is because of the law of demand. There is an inverse relationship between the price of a commodity and its demand.

So a decrease in quantity demanded means that the price has increased. It is indicated by an upward movement on the same demand curve.

A decrease in price, on the other hand, will lead to an increase in the quantity demanded. This will cause a downward movement on the same demand curve.