Which is true?

A. A change in quantity demanded is a response to a price change and a change in demand is a response to a non-price change

B. A change in demand and a change in quantity demanded both happen in response to price changes

C. Both describe a movement along a single demand curve

D. The two terms can be used interchangeably

E. A change in quantity demanded occurs when price increases and a change in demand occur when a price decreases

Question

Social Studies

Gia Barrera

7 August, 22:32

Which is true?

A. A change in quantity demanded is a response to a price change and a change in demand is a response to a non-price change

B. A change in demand and a change in quantity demanded both happen in response to price changes

C. Both describe a movement along a single demand curve

D. The two terms can be used interchangeably

E. A change in quantity demanded occurs when price increases and a change in demand occur when a price decreases

+4

Answers (1)

Know the Answer?

Duckling · Answer 1

The correct answer is option A.

Explanation:

A change in quantity demanded occurs because of a change in the price of the product. It is indicated by a movement on the same demand curve. There is an inverse relationship between quantity demanded and price of a product while other factors remain constant. So when price increases, the quantity demanded falls and vice versa.

A change in demand occurs because of a change in other factors while the price of the product remains constant. This is indicated by a shift in the demand curve. The other factors are the price of other goods, tastes, and preferences, the income of the consumer, etc.