-The shift of the demand curve from D 0 to D 1 in the second diagram might be caused by a per unit:

A shift in the demand curve can be caused by a subsidy paid to the buyers of the product, making the product effectively cheaper for them and increasing the quantity demanded at each price level.

-The shift of the demand curve from D 0 to D 1 in the second diagram might be caused by a per unit:

A shift in the demand curve can be caused by a subsidy paid to the buyers of the product, making the product effectively cheaper for them and increasing the quantity demanded at each price level.

Solved

-The Shift of the Demand Curve from D₀ to D₁

Question 32

Multiple Choice

-The shift of the demand curve from D₀ to D₁ in the second diagram might be caused by a per unit:

A) subsidy paid to the producers of this product
B) tax on the producers of this product
C) subsidy paid to the buyers of this product
D) tax on the buyers of this product
E) tax on the buyers of this product combined with a subsidy paid to producers

Correct Answer: