If the price of a product rises while other factors remain unchanged, what happens in a standard demand model?
Correct answer: C. There is a movement upward along the demand curve
- A. The demand curve shifts to the right
- B. The demand curve shifts to the left
- C. There is a movement upward along the demand curve
- D. There is a movement downward along the demand curve
Explanation
A change in the product's own price causes a movement along the existing demand curve. Changes in income, tastes or prices of related goods shift the entire demand curve.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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