When due to change in price of commodity itself alone, quantity demanded of a commodity changes, what do we term it as?
Answer & explanation
Correct answer: option 1
The correct answer is Option 1: movement along the demand curve
When a change in the price of a commodity results in a change in the quantity demanded, this is referred to as a movement along the demand curve. An increase in price typically leads to a decrease in quantity demanded, and a decrease in price typically leads to an increase in quantity demanded, both of which are represented as movements along the curve.
Changes in the demand for a commodity can be classified in 2 ways:
- shift in the demand curve- changes due to factors other than price
- movement along the demand curve- changes caused due to price