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    Supply and Demand Curves Movements and Representations

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    Answer true or false and if the statement is false, change it to make it true.

    A. An increase in demand is represented by a movement up the demand curve.
    B. An increase in supply is represented by a movement up the supply curve.

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    https://brainmass.com/economics/supply-and-demand/supply-demand-curves-movements-representations-38345

    Solution Preview

    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 ...

    Solution Summary

    An increase in demand is studied.

    $2.19