Exhibit 14-1

-Refer to the graph in the exhibit.Suppose the price level increases.What will this move cause?
A) a move from B to A
B) a move from A to B
C) a move from DM to DM'
D) a move from DM to DM*

Question

Exhibit 14-1
 
-Refer to the graph in the exhibit.Suppose the price level increases.What will this move cause?  
A) a move from B to A 
B) a move from A to B 
C) a move from DM to DM' 
D) a move from DM to DM*

Quizplus · Accepted Answer

An increase in the price level causes a leftward shift of the demand curve from DM to DM', resulting in a lower quantity demanded at the given price level. This is represented by a movement along the supply curve from point A to point B.

Exhibit 14-1 -Refer to the Graph in the Exhibit.Suppose the Price Level