A increase in the price of grapes woul be shown as [homework]

Question

a. the point on the line moving to the left

b. the point on the line moving to the right

c. the demand curve shifting to the left

d. the demand curve shifting to the right

Answer 1

a. a point on the demand curve moving leftward (& upward) along the demand curve

a change in equilibrium price involves a movement along the demand curve, not a shift in the demand curve

But what caused the price to change? It could be due to a leftward shift in the supply curve, such as OPEC cutting back on oil sales, or it could be due to a rightward shift in the demand curve, such as when people get economic stimulus checks of $1,200. So really, d or a could be correct depending on other information, not given in the problem. But a is probably the best answer. A change in price could also be due to government taxes, which leave the underlying supply and demand curves unchanged, or to other government regulations causing costs to increase, driving the price up.