CA Foundation · Business Economics · Theory of Demand and Supply
Which of the following will cause a movement along the demand curve for a commodity rather than a shift of the curve?
A change in the commodity's own price causes a movement along the demand curve. Changes in income, the price of substitutes or complements, and tastes are factors held constant in drawing the curve, so changes in them shift the whole curve instead.
- AA change in the price of the commodity itselfCorrect
- BA change in consumers' income
- CA change in the price of a substitute
- DA change in consumers' tastes and preferences
Explanation
Only a change in the commodity's own price moves the consumer along the same demand curve. Income, prices of related goods and tastes are determinants behind the curve, and a change in any of them shifts the entire curve.
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