FIGURE 3-1

-Refer to Figure 3-1. Beginning on D₁, what would a shift to D₀ indicate?
A) an increase in quantity demanded
B) a decrease in demand
C) a decrease in quantity demanded
D) an increase in demand

Question

FIGURE 3-1
 
-Refer to Figure 3-1. Beginning on D₁, what would a shift to D₀ indicate?
A) an increase in quantity demanded 
B) a decrease in demand 
C) a decrease in quantity demanded 
D) an increase in demand

Quizplus · Accepted Answer

A shift from D₁ to D₀ indicates a decrease in demand, not just a change in the quantity demanded. This shift means that at every price level, consumers now want to buy less of the good than before.

FIGURE 3-1 -Refer to Figure 3-1. Beginning on D₁, What Would a D₁