A fall in demand at any given price, causing the demand curve to shift to the left, is called what?

A fall in demand at any given price, causing the demand curve to shift to the left, is called what?

• A. Increase in Demand
• B. Decrease in Demand
• C. Movement Along Demand Curve
• D. Law of Demand

Answer: (B)

This question tests how demand can change when non-price factors move the entire relationship between price and quantity demanded. A fall in demand at every price means the whole demand curve shifts left, because at any given price fewer people want to buy. This is called a decrease in demand. It’s different from a movement along the curve, which would happen if the price itself changed and people simply bought more or less at that same curve. The Law of Demand describes the inverse price–quantity relationship, but the shift left reflects a change in demand due to factors other than price (income, tastes, prices of substitutes or complements, expectations, number of buyers).

This question tests how demand can change when non-price factors move the entire relationship between price and quantity demanded. A fall in demand at every price means the whole demand curve shifts left, because at any given price fewer people want to buy. This is called a decrease in demand.

It’s different from a movement along the curve, which would happen if the price itself changed and people simply bought more or less at that same curve. The Law of Demand describes the inverse price–quantity relationship, but the shift left reflects a change in demand due to factors other than price (income, tastes, prices of substitutes or complements, expectations, number of buyers).