Figure 2.3

-In Figure 2.3, the initial demand curve is D₁ and the supply curve is S₁. If consumers become optimistic about their future economic well-being, the most likely consequence is a shift from

Question

Figure 2.3
Figure 2.3 -In Figure 2.3, the initial demand curve is D1 and the supply curve is S1. If consumers become optimistic about their future economic well-being, the most likely consequence is a shift from A) S1 to S2. B) D1 to D2. C) D1 to D3. D) D3 to D1. E) D2 to D1.

Figure 2.3 -In Figure 2.3, the initial demand curve is D<sub>1</sub> and the supply curve is S<sub>1</sub>. If consumers become optimistic about their future economic well-being, the most likely consequence is a shift from A) S<sub>1</sub> to S<sub>2</sub>. B) D<sub>1</sub> to D<sub>2</sub>. C) D<sub>1</sub> to D<sub>3</sub>. D) D<sub>3</sub> to D<sub>1</sub>. E) D<sub>2</sub> to D<sub>1</sub>.

-In Figure 2.3, the initial demand curve is D₁ and the supply curve is S₁. If consumers become optimistic about their future economic well-being, the most likely consequence is a shift from

Quizplus · Accepted Answer

If consumers become optimistic about their future economic well-being, it means they are likely to increase their demand for goods and services, leading to an outward shift of the demand curve. Therefore, the initial demand curve D₁ would shift rightward to D₂, shown by the red dotted line in the graph. This would result in a new equilibrium point at the intersection of the new demand curve and the supply curve S₁. Therefore, the supply curve would remain the same. Hence, the correct choice is B.

Figure 2.3 -In Figure 2.3, the Initial Demand Curve Is D1 and Curve

Figure 2.3 -In Figure 2.3, the Initial Demand Curve Is D₁ and Curve