Refer to Figure 14.2 for the following questions.
Figure 14.2

-Refer to Figure 14.2. Suppose that Italians reduce their demand for Australian steel by half. Assuming all else remains constant, this would be represented as a movement from:
A)D₂ to D₁.
B)D₁ to D₂.
C)S₂ to S₁.
D)S₁ to S₂.

Question

Refer to Figure 14.2 for the following questions.
Figure 14.2
 
-Refer to Figure 14.2. Suppose that Italians reduce their demand for Australian steel by half. Assuming all else remains constant, this would be represented as a movement from:
A)D₂ to D₁. 
B)D₁ to D₂. 
C)S₂ to S₁. 
D)S₁ to S₂.

Quizplus · Accepted Answer

The reduction in demand for Australian steel by half would result in a leftward shift of the demand curve. This movement is represented as a shift from D₂ to D₁.

Refer to Figure 14.2 for the Following Questions