Asked by Priscilla Johnson on Apr 29, 2024

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Suppose the price level is measured along the vertical axis on a graph. When the price level changes, there will be a

A) rotation of the curve.
B) shift of the curve.
C) movement along the curve.
D) change in the slope of the curve.

Price Level

The overall mean price of all current goods and services in the economic setting.

Curve

In economics, a graphical representation showing the relationship between two varying quantities, such as supply and demand.

Slope

A measure of the steepness, incline, or grade of a line, representing the rate of change between variables on a graph.

  • Understand the fundamental elements and motions in graph-based coordinate systems.
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Verified Answer

AL
Alexis LedesmaMay 01, 2024
Final Answer :
C
Explanation :
A change in the price level, when plotted on a graph with the price level on the vertical axis, results in a movement along the curve, not a shift or rotation of the curve or a change in its slope. This is because the curve itself represents a relationship at various price levels, so a change in price moves the point of observation along the existing curve.