Use the following to answer question:
-(Figure: Shifts in Demand and Supply II)Use Figure: Shifts in Demand and Supply II.The figure shows how supply and demand might shift in response to specific events.Suppose the birthrate decreases.Which panel BEST describes how this will affect the market for diapers?
A)Panel A
B)Panel B
C)Panel C
D)Panel D

Question

Use the following to answer question: 
-(Figure: Shifts in Demand and Supply II)Use Figure: Shifts in Demand and Supply II.The figure shows how supply and demand might shift in response to specific events.Suppose the birthrate decreases.Which panel BEST describes how this will affect the market for diapers?
A)Panel A 
B)Panel B 
C)Panel C 
D)Panel D

Quizplus · Accepted Answer

A decrease in birthrate represents a decrease in demand for diapers, shifting the demand curve to the left as shown in Panel B. This leads to a lower equilibrium price and quantity of diapers.

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