26. A graph called a demand curve can be used to illustrate the relationship bet

Question

26. A graph called a demand curve can be used to illustrate the relationship between the price of compact disc players and the quantity of compact disc players demanded. If there is evidence that buyers' income and the price of cassette tape players also influence the demand for compact disc players, then a movement along the curve can be caused by a change in either the:
A) price of compact disc players or buyers' income.
B) price of cassette tape players or buyers' income.
C) quantity of compact disc players demanded or buyers' income.
D) price of compact disc players or the quantity of compact disc players demanded.

27. A graph called a demand curve can be used to illustrate the relationship between the price of compact disc players and the quantity of compact disc players demanded. If there is evidence that buyers' income and the price of cassette tape players also influence the demand for compact disc players, then a shift in the curve can be caused by a change in either the:
A) price of compact disc players or buyers' income.
B) price of cassette tape players or buyers' income.
C) quantity of compact disc players demanded or buyers' income.
D) price of compact disc players or the quantity of compact disc players demanded.

Explanation / Answer

Movement along a demand curve only occurs when the price changes. A change in any non-price determinant of demand would result in a shift of the demand curve. 26. The choices are worded poorly, but if the change in the quantity of compact disc players demanded is due to a change in their price, then the best answer is D. 27. A shift in the demand curve can be caused by a change in the price of alternatives goods (such as cassete tape players) or income, so the best answer is B)

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