Final answer:
An increase in the price of a good causes an upward movement along the demand curve, which reflects a lower quantity demanded at the new, higher price. It does not shift the demand curve itself. Factors like tastes or preferences, however, can cause the demand curve to shift to the right or left.
Step-by-step explanation:
If the price of a good rises, this will cause an upward movement along the demand curve. This upward movement represents a decrease in the quantity demanded as the price increases, not a shift of the demand curve itself. Price changes result in movements along the demand curve, whereas shifts of the demand curve to the left or right are caused by factors other than price, such as changes in consumer tastes, incomes, prices of related goods, or expectations.
For example, if the improvement in product quality increases consumer satisfaction with the product, this leads to an increase in tastes or preferences, subsequently causing an increase in demand. Consumers would demand more of this higher quality product at any given price level, which would be represented by a rightward shift in the demand curve. This is distinct from a price change, which would simply result in an upward or downward movement along an unchanged demand curve.