Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 4 - Part II - The Market Forces of Supply and Demand - Questions for Review - Page 86: 3

Answer

A change in consumers' tastes leads to a shift of the demand curve. A change in price leads to movement along the demand curve.

Work Step by Step

The demand curve shows how the quantity of a good depends on the price. So when the price changes, there is movement along the curve. Any other determinants of how much consumers want to buy a good, such as consumers' tastes, instead leads to a shift of the demand curve.
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