Figure 4.2 shows the demand curves for a good.A shift from demand curve D to demand curve D' in the figure would be caused by a(n) :

Question

Figure 4.2 shows the demand curves for a good.A shift from demand curve D to demand curve D' in the figure would be caused by a(n):

Quizplus · Accepted Answer

A shift from demand curve D to demand curve D' indicates a decrease in demand for the good. This could be caused by a decrease in consumer income, as consumers may not be able to afford or prioritize purchasing the good anymore. A decrease in the price of the good or an increase in population would likely lead to an increase in demand, shifting the curve to the right (from D to D'), and a decrease in the number of producers or an increase in cost of production would likely lead to a decrease in supply, which is different from a decrease in demand. An increase in the price of an important resource would affect the cost of production and supply, not demand.

Figure 42 Shows the Demand Curves for a Good