The product is a normal product.

-Refer to the graph above to answer this question.Which of the following statements is correct?
A)Both ab and ac represent an increase in the quantity demanded.
B)Both ab and ac represent an increase in demand.
C)While ab represents an increase in demand,ac represents an increase in supply.
D)While ac represents an increase in demand,ab represents an increase in the quantity supplied.
E)Both ab and cb represent an increase in demand.

Question

The product is a normal product.
 
-Refer to the graph above to answer this question.Which of the following statements is correct?
A)Both ab and ac represent an increase in the quantity demanded. 
B)Both ab and ac represent an increase in demand. 
C)While ab represents an increase in demand,ac represents an increase in supply. 
D)While ac represents an increase in demand,ab represents an increase in the quantity supplied. 
E)Both ab and cb represent an increase in demand.

Quizplus · Accepted Answer

The graph shows a movement along the supply curve (from point a to point b), which represents an increase in quantity supplied. This could be due to a decrease in production costs or an increase in the selling price of the product, leading to more supply being offered at each price level. On the other hand, the movement from point a to point c represents an increase in demand, which could be due to changes in consumer preferences, population growth, or increased advertising/promotion. Therefore, option D is the correct answer.

The Product Is a Normal Product