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ACCA Applied Knowledge · Business and Technology · Microeconomic factors

Which of the following would cause a movement along a product's demand curve, rather than a shift of the curve?

A change in the price of the product itself causes a movement along the demand curve. Changes in tastes or in the price of complements alter demand at every price, so they shift the whole curve instead.

  1. AA change in the price of the product itselfCorrect
  2. BA change in consumers' tastes towards the product
  3. CA change in the price of a complementary good

Explanation

Only a change in the product's own price moves along the demand curve. Changes in tastes, incomes or prices of related goods change demand at every price and so shift the curve.

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