In: Economics
Does a change in consumers' tastes lead to a movement along the demand curve or to a shift in the demand curve?
Does a change in price lead to a movement along the demand curve or to a shift in the demand curve?
Explain your answers well written.
Does a change in consumers' tastes lead to a movement along the
demand curve or to a shift in the demand curve?
It leads to a shift of the demand curve. a favorable change in
tasts leads to higher quantity demanded at each price i.e. right
shift of demand curve. an unfavorable change shifts the demand
curve to the left.
Does a change in price lead to a movement along the demand curve
or to a shift in the demand curve?
the change in price leads to a movement along the demand curve.
THis is because the demadn curve assumes all factors except the
price to be constant. IT shows the quantity demanded at each price
level