(Figure: Demand for Bananas) Use Figure: Demand for Bananas. A decreased preference for bananas could be represented as a:

A) shift from D1 to D2.
B) movement from point A to point B.
C) shift from D1 to D3.
D) movement from point B to point E.

Question

(Figure: Demand for Bananas) Use Figure: Demand for Bananas. A decreased preference for bananas could be represented as a:
​

A) shift from D1 to D2. 
B) movement from point A to point B. 
C) shift from D1 to D3. 
D) movement from point B to point E.

Quizplus · Accepted Answer

A decrease in preference would lead to a decrease in demand, which would cause a shift in the demand curve to the left. Therefore, the best choice is C, which represents a shift from D1 to D3.