What does a change in the price of a good cause in relation to the demand curve?

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A change in the price of a good results in a movement along the demand curve rather than a shift in the demand curve itself. This movement reflects the law of demand, which states that, all else being equal, an increase in the price of a good will lead to a decrease in the quantity demanded, and vice versa.

When the price of a good changes, consumers will respond by purchasing more or less of that good, resulting in a change in the quantity demanded that is represented as a movement along the existing demand curve. Conversely, a shift in the demand curve would occur due to factors other than the price of the good, such as changes in consumer preferences, income levels, the prices of related goods, or other external economic factors.

Thus, the correct choice highlights the dynamic nature of consumer behavior in response to price changes, illustrating a fundamental principle in economics.

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