Figure 4-3

Refer to Figure 4-3. The shift from Da to Db is called

Question

Figure 4-3

Refer to Figure 4-3. The shift from Da to Db is called

BlackTom AI · Accepted Answer

When interpreting Figure 4-3, the notation shows Da shifting to Db. This kind of shift occurs when the entire demand curve moves to a new position rather than a movement along the same curve.
Option 1: a decrease in demand. This would require the demand curve to move leftward (less willingness to buy at every price). Since Da moves to Db in the figure, which is toward the right, this option is incorrect.
Option 2: a decrease in quantity demanded. A decrease in quantity demanded is a movement along the same demand curve due to a price change, not a shift of the curve itself. The graph shows a shift of the curve, so this description does not fit.
Option 3: an increase in quantity demanded. Similar to option 2, this is a movement along the curve resulting from a price change, not a shift of the entire curve from Da to Db. The diagram indicates a structural shift, not a price-driven movement.
Option 4: an increase in demand. A rightward shift of the demand curve indicates that at every price, quantity demanded is higher than before, which matches the depicted transition from Da to Db.
In summary, the correct interpretation of the shift shown is that demand has increased, while the other options describe movements along the curve or opposite directional shifts that are not consistent with the figure.

Figure 4-3 Refer to Figure 4-3. The shift from Da to Db is called

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