Figure 4.2 shows the demand curves for a good.A shift from demand curve D to demand curve D' in the figure would be caused by a(n) : Figure 4.2

Question

Figure 4.2 shows the demand curves for a good.A shift from demand curve D to demand curve D' in the figure would be caused by a(n): Figure 4.2
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Quizplus · Accepted Answer

A decrease in consumer income would cause a shift from demand curve D to D', as consumers would be willing and able to buy less of the good at any given price. Option A is incorrect as it suggests a movement along the same demand curve due to a change in price. Option B is also incorrect, as an increase in population due to immigration would cause a shift in demand curve only if the good is a normal good, but this information is not provided. Option D is incorrect, as a decrease in the number of producers would cause a shift in the supply curve, not the demand curve. Option E is incorrect, as an increase in the price of an important resource would cause a decrease in supply, not demand.

Figure 42 Shows the Demand Curves for a Good