Questions: A change from Point A to Point B represents a(n); (A) decrease in quantity demanded. (B) increase in quantity demanded. (C) decrease in demand. (D) increase in demand.

Solution Steps

Point A and Point B are on the same demand curve ($D_0$). Moving from point A to point B involves moving along the demand curve to a higher price and lower quantity.

Quantity demanded refers to the specific amount of a good that consumers are willing and able to buy at a particular price, holding other factors constant. It represents a point on the demand curve. A change in quantity demanded occurs due to a change in the price of that specific good. This is represented by movement along the demand curve.

Demand refers to the entire relationship between the price of a good and the quantity demanded. It is represented by the whole demand curve. A change in demand occurs when other factors shift the entire demand curve to the left (decrease in demand) or right (increase in demand).

Final Answer: The correct answer is A, a decrease in quantity demanded.