Answer to Question #281300 in Economics of Enterprise for RaksVitch

Question

Does a change in consumers’ tastes lead to a movement along the demand curve or to a shift in the demand curve?

Answer 1

A change consumers' taste will only shift the demand curve, while a change in the price of the good itself will represent a movement along the demand curve. A curve shifts when there is a change in a relevant variable that is not measured on either axis.