What happens to the demand curve when all non-price determinants of demand are held constant while the price changes?

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Study for the University of Central Florida ECO2023 Principles of Microeconomics Final. Prepare with multiple choice questions, flashcards with helpful hints and explanations. Ace your exam!

When considering the impact of a price change on the demand curve while holding all non-price determinants constant, the correct observation is that the quantity demanded changes along the curve.

In microeconomics, the demand curve represents the relationship between the price of a good and the quantity demanded by consumers. When the price of the good changes, and all else remains equal (non-price determinants such as consumer preferences, income levels, and prices of related goods do not change), the movement occurs along the existing demand curve. This movement indicates a change in quantity demanded—if the price decreases, the quantity demanded typically increases, and vice versa.

This concept distinguishes between changes in demand and changes in quantity demanded. A change in demand would involve a shift of the entire curve, which occurs only when non-price determinants change. Thus, since the scenario specifies that these determinants are held constant, the shape of the demand curve remains unchanged, and any change occurs solely as a movement along the curve due to the price variation.