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A change in the price of a good or service causes a movement along the demand curve.

A price rise will cause a decrease (contraction) in the quantity demanded of the product.

A rise in price from P2 to P1 causes demand to fall from Q2 to Q1.

A reduction in price will cause an increase (expansion) in the quantity demanded.

A fall in price from P2 to P3 causes demand to expand from Q2 to Q3.

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Movement along the demand curve

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