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Exhibit: Demand and Supply-Determinants
-(Exhibit: Demand and Supply-Determinants)
The exhibit shows how supply and demand might shift in response to specific events.Suppose the birth rate (the number of babies per female in the childbearing age bracket)
Decreases.Which panel best describes how this will affect the market for diapers?

Question

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Exhibit: Demand and Supply-Determinants 
-(Exhibit: Demand and Supply-Determinants)
The exhibit shows how supply and demand might shift in response to specific events.Suppose the birth rate (the number of babies per female in the childbearing age bracket)
Decreases.Which panel best describes how this will affect the market for diapers?

Quizplus · Accepted Answer

A decrease in the birth rate would lead to a decrease in demand for diapers, shifting the demand curve to the left, as shown in Panel (b).

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