Australian Year 10 Economics Practice Test

Movement along the demand curve happens when the price of the good changes, causing the quantity demanded to change along the same curve while all other determinants stay the same. A fall in price lowers the price on the vertical axis and leads to a higher quantity demanded at a point lower on the curve, which is exactly a movement along the curve. The other scenarios involve non-price factors such as income, tastes, and the prices of related goods, which shift the entire demand curve rather than move along it.