-Refer to the above figure. Which of the following statements is TRUE?
A) Panel A shows a decrease in demand and Panel B shows an increase in demand.
B) Both Panels A and B show an increase in demand.
C) Panel A shows a change in demand and Panel B shows a change in quantity demanded.
D) Panel A shows a change in quantity demanded and Panel B shows a change in demand.

Question

-Refer to the above figure. Which of the following statements is TRUE?
A) Panel A shows a decrease in demand and Panel B shows an increase in demand. 
B) Both Panels A and B show an increase in demand. 
C) Panel A shows a change in demand and Panel B shows a change in quantity demanded. 
D) Panel A shows a change in quantity demanded and Panel B shows a change in demand.

Quizplus · Accepted Answer

Panel A illustrates a movement along the demand curve, indicating a change in quantity demanded due to a change in price, not a shift in the demand curve itself. Panel B shows a shift of the entire demand curve to the right, indicating an increase in demand at all price levels, not just a change in quantity demanded.

-Refer to the Above Figure