Part E: A decrease in demand would be represented by a shift from D2 to

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Part E: A decrease in demand would be represented by a shift from D2 to

BlackTom AI · Accepted Answer

The question asks about how a decrease in demand would be represented on a graph with demand curves.
First, recall that a decrease in demand means that, at every price, the quantity demanded is lower than before, which is graphically shown as a leftward shift of the entire demand curve.
In this context, the notation D2 to D1 indicates moving from the original demand curve D2 to a new curve D1 located to the left of D2. This leftward shift matches the concept of a decrease in demand.
Since the provided answer is D1, we can reason that D1 represents the new, lower-demand curve after the shift. 
If one were to consider an increase in demand, the shift would be to the right (to a curve further to the right of D2). Conversely, a movement along the same curve would indicate a change in quantity demanded due to a price change, not a change in demand itself.
In the absence of any additional context or alternative options, the leftward shift from D2 to D1 aligns with the standard representation of a decrease in demand on a demand–supply diagram.

ECON_002_001_25F Problem Set 1

Part E: A decrease in demand would be represented by a shift from D2 to

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ECON_002_001_25F Problem Set 1

Part E: A decrease in demand would be represented by a shift from D2 to

View Explanation

Log in for full answers

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