An increase in price shifts the demand curve to the left.Group of answer choicesTrueFalse

Analysis of the Statement

1. Understanding Demand Curves: The demand curve represents the relationship between the price of a good and the quantity demanded. When prices increase, typically, the quantity demanded decreases, moving along the demand curve.

2. Shift vs. Movement: An increase in price does not shift the demand curve itself; rather, it results in a movement along the curve. A leftward shift indicates a decrease in demand, which occurs due to factors other than price (e.g., consumer preferences, income changes).

3. Conclusion on the Statement: Given the definition and behavior of demand curves, an increase in price causes a movement along the demand curve rather than a leftward shift of the curve itself.

Final Answer

False. An increase in price does not shift the demand curve to the left; it results in a movement along the curve.