Figure: Demand Shift In the figure, the demand curve shifted from D₀ to D₁. To describe this movement, we would say that: A) demand increased, which caused an increase in supply. B) quantity demanded increased, which caused an increase in supply. C) demand increased, which caused an increase in quantity supplied. D) quantity demanded increased, which caused an increase in quantity supplied.

Question

Quizplus · Accepted Answer

The demand curve shifted to the right, indicating an increase in demand. This caused an increase in the quantity supplied, as indicated by the movement along the supply curve. Thus, option C is correct. Options A and B are incorrect because they suggest an increase in supply, which is not necessarily the case. Option D does not explain the cause of the increase in quantity supplied.

Figure: Demand Shift in the Figure, the Demand Curve