Answer to Question #316999 in Microeconomics for Nobuhle

Question

I’m economic theory, a clear distinction is made between a movement along the demand curve and a movement of the demand curve. I’m light of this statement, provide the correct graph to illustrate and explain an increase in the price of the product

Answer 1

A movement along the demand curve happens when a change in the quantity demanded is as a result of change in price only while a movement of the demand curve happens when all other factors affecting the quantity demanded, remain constant and only the price changes.

An increase in price of a product will lead to an decrease in demand of goods from Q1 to Q2