A MOVEMENT ALONG A DEMAND CURVE THAT RESULTS FROM A CHANGE IN PRICE IS CALLED A QUANTITY DEMANDED. True False
Question
A MOVEMENT ALONG A DEMAND CURVE THAT RESULTS FROM A CHANGE IN PRICE IS CALLED A QUANTITY DEMANDED.
- True
- False
Solution
Step 1: Analyze the Statement
The statement claims that a movement along a demand curve due to a change in price is called a quantity demanded.
Step 2: Relevant Concepts
- Demand Curve: Represents the relationship between the price of a good and the quantity demanded.
- Quantity Demanded: Refers specifically to the amount of a good that consumers are willing to buy at a given price.
- Movement along Demand Curve: This occurs when the price of the good changes, leading to a different quantity demanded without shifting the demand curve itself.
Step 3: Verification
In economic terms, when the price changes, it causes a movement along the demand curve, which indeed reflects a change in quantity demanded. Therefore, the statement is correct because the definition aligns with economic principles.
Final Answer
True: A movement along a demand curve that results from a change in price is indeed called a quantity demanded.
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