Answer true or false and if the statement is false, change it to make it true.© BrainMass Inc. brainmass.com October 9, 2019, 4:40 pm ad1c9bdddf
An increase in demand is represented by a movement up the demand curve.
This statement is false.
There are two main things to note here.
1. The only time there is a movement along the demand curve is when there is a change in price.
This is referred to as a "change in the quantity demanded". A movement along the curve (upwards or 'leftwards') would be the result of an increase in price.
2. A "change in demand" causes a shift in the whole demand curve. This is caused by factors such as change in income, price of substitute and complementary goods and consumer tastes.
A correct statement would be:
"An increase in demand is represented by a shift in the demand curve from left ...
An increase in demand is studied.