The demand for a good decreases as its price increases. What does this scenario represent?

Question

BlackTom AI · Accepted Answer

The law of demand states that, ceteris paribus, as the price of a good rises, the quantity demanded falls. This relationship is represented graphically by a downward‑sloping demand curve. A change in the price of the good itself causes movement along that curve (a change in quantity demanded), while changes in non‑price factors (income, tastes, prices of related goods, expectations, number of buyers) shift the entire demand curve.

Step‑by‑step reasoning:
1. Identify the variable that changed: the scenario says price increases. This is a price change, not a change in income, preferences, or other determinants.
2. Determine the demand response: according to the law of demand, when price increases, quantity demanded decreases. That is a movement from one point to another on the same demand curve.
3. Graphical interpretation: start at point A (price P1, quantity Q1). Price rises to P2 > P1, and quantity falls to Q2 < Q1. This is movement upward and leftward along the same demand curve, not a shift of the curve.

Numeric illustration (intermediate steps):
- Suppose at P = $2, Q = 100 units. If price rises to P = $4 and Q falls to 60 units, we moved from (P=2, Q=100) to (P=4, Q=60) along the same demand curve. No information about non‑price determinants changed, so the curve itself stays fixed.

Why the correct answer is correct:
- "A movement along the demand curve" precisely describes a quantity change caused by a price change. That matches the scenario.

Why the other options are incorrect:
- "A shift in the demand curve" is wrong because a shift requires changes in non‑price determinants (preferences, income, etc.), not a price change.
- "An increase in quantity demanded" is wrong because the scenario describes a decrease in demand (quantity demanded falls) when price rises.
- "A change in consumer preferences" is a possible cause of a demand shift, not the direct effect of a price increase.

Conclusion: The correct choice is 2. A movement along the demand curve, which matches the provided answer.

The demand for a good decreases as its price increases. What does this scenario represent?单项选择题

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