Exhibit 3-2 Demand curves In Exhibit 3-2, the shift in the demand curve from D₁ to D₂ could have been caused by which of the following?

Question

Quizplus · Accepted Answer

The shift in the demand curve from D₁ to D₂ suggests that consumers now expect higher prices for the good in the future, causing a shift in the demand curve to the right. This is consistent with an increase in expected future prices. None of the other options listed would result in a shift to the right.

Exhibit 3-2 Demand Curves in Exhibit 3-2, the Shift in the Demand