(Figure: Demand Shift) In the figure, the demand curve shifted from D0 to D1. To describe this movement, we would say that:

Question

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The demand curve shifted from D0 to D1, indicating an increase in demand. This increase in demand causes suppliers to increase their quantity supplied, resulting in a movement along the supply curve from point A to point B. Therefore, demand increased which caused an increase in quantity supplied. Option A is incorrect because an increase in demand does not directly lead to an increase in supply. Option B is incorrect because an increase in quantity demanded does not necessarily cause an increase in supply. Option D is incorrect because an increase in quantity demanded alone does not cause an increase in quantity supplied.

(Figure: Demand Shift) in the Figure, the Demand Curve Shifted