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 to the right, indicating an increase in demand. This increase in demand caused an increase in quantity supplied, as the quantity supplied shifted along the supply curve to the right. Therefore, the correct answer is that demand increased, which caused an increase in quantity supplied.

Figure: Demand Shift in the Figure,the Demand Curve Shifted