Question

Consider the demand for socks. What would cause a movement from one point on the demand curve to a point further down the curve?

(A) An increase in the price of socks
(B) A big sale on socks
(C) Increased demand for shoes typically worn without socks
(D) Falling demand for shoes typically worn without socks

Answer 1

(B) A big sale on socks

For a movement along the demand curve the reason has to be a price factor as all other factors shift the supply curve to the right or left. In this case the a big sale on socks would mean that the price of the socks is decreasing, which will move the point on the demand curve further down on the curve as the demand curve is downward sloping, and a decrease in price would move the point of quantity traded further down to the curve.

Step-by-step explanation: