Figure: Demand Shift In the figure, the demand curve shifted from D₀ to D₁. To describe this movement, we would say that: A) demand increased, which caused an increase in supply. B) quantity demanded increased, which caused an increase in supply. C) demand increased, which caused an increase in quantity supplied. D) quantity demanded increased, which caused an increase in quantity supplied.

Question

Quizplus · Accepted Answer

The demand curve shifted outward (to the right) which indicates an increase in demand. This leads to an increase in equilibrium price (from P1 to P0) and an increase in equilibrium quantity (from Q1 to Q0), which results in an increase in quantity supplied. Therefore, C is the best choice as it correctly describes the movement in the figure.

Figure: Demand Shift in the Figure, the Demand Curve