If the market price moves from one point on a demand curve to another point on the curve, what has happened to total market demand?
A.
The total market demand has been adjusted by a change in supply.
B.
The total market demand has decreased.
C.
The total market demand has not changed.
D.
The total market demand has increased.
C. The total market demand has not changed.
C. The total market demand has not changed.
To determine what has happened to the total market demand, we need to understand the relationship between market price and quantity demanded on a demand curve.
A demand curve shows the quantity of a product that consumers are willing and able to purchase at different price levels. Generally, as the price of a product increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases.
In this scenario, if the market price moves from one point on the demand curve to another point on the curve, it means that the price has changed. However, we don't have any information about the specific direction of the price change.
If the price has increased, it is likely that the quantity demanded has decreased, as consumers tend to buy less of a product as its price increases. In this case, the total market demand would have decreased.
On the other hand, if the price has decreased, it is likely that the quantity demanded has increased, as consumers tend to buy more of a product as its price decreases. In this case, the total market demand would have increased.
Therefore, the answer to your question is either B. The total market demand has decreased if the price has increased or D. The total market demand has increased if the price has decreased. It depends on the direction of the price change.