Question

A change in the price of a product, ceteris paribus, results in

a shift in a demand or supply curve.
a change in the outside variables affecting the product's demand or supply
curve.
movement along a demand or supply curve.
all of the above.

Answer 1

Answer: A change in demand refers to a shift of the demand curve. A shift occurs if there is a change in one of the​ variables, other than the price of the product​, that affects the willingness of consumers to buy the product.

Step-by-step explanation:

A change in the price of a product, ceteris paribus (meaning all other factors remain constant), can result in different outcomes.

Firstly, it can lead to a shift in the demand curve. This means that the quantity demanded at each price level changes. For example, if the price of a smartphone increases, the demand for smartphones might decrease, leading to a leftward shift of the demand curve.

Secondly, it can also result in a shift in the supply curve. This means that the quantity supplied at each price level changes. For instance, if the price of a raw material used in the production of cars increases, the supply of cars might decrease, leading to a leftward shift of the supply curve.

Lastly, a change in price can also cause movement along the demand or supply curve. This refers to a change in the quantity demanded or supplied due to a change in price, while other factors remain constant. For example, if the price of a coffee cup increases, consumers may decide to buy fewer cups, resulting in a movement up along the demand curve.

In summary, a change in price, ceteris paribus, can lead to a shift in the demand or supply curve, a change in the outside variables affecting the product's demand or supply curve, or movement along a demand or supply curve.

Answer 2

A change in the price of a product, ceteris paribus, results in movement along a demand or supply curve. This means that when the price of a product changes, there is a corresponding change in the quantity demanded or supplied of that product.

an example to understand this concept better. Suppose the price of a chocolate bar increases. As a result, consumers may decide to buy fewer chocolate bars because they find them more expensive. This decrease in quantity demanded is represented by a movement along the demand curve. On the other hand, if the price of a chocolate bar decreases, consumers may decide to buy more chocolate bars because they find them more affordable. This increase in quantity demanded is also represented by a movement along the demand curve, but in the opposite direction.

Similarly, a change in the price of a product can also lead to a movement along the supply curve. For instance, if the price of a chocolate bar increases, producers may be willing to supply more chocolate bars because they can earn higher profits. This increase in quantity supplied is represented by a movement along the supply curve. Conversely, if the price of a chocolate bar decreases, producers may be less willing to supply the product because their profits would be lower. This decrease in quantity supplied is also represented by a movement along the supply curve, but in the opposite direction.

To summarize, a change in the price of a product, ceteris paribus, results in movement along a demand or supply curve. However, it's important to note that a change in the price of a product does not cause a shift in the demand or supply curve. Shifts in the demand or supply curve occur due to factors other than the price of the product, such as changes in consumer preferences, income levels, input prices, or government regulations. Therefore, the correct answer to the question is: movement along a demand or supply curve.