QUESTION IMAGE
Question
the law of supply and demand
assignment active
supply and demand curves
supply and demand equilibrium
what change is taking place on this graph?
○ a decrease in supply
○ a decrease in demand
○ an increase in supply
○ an increase in demand
graph: supply (blue upward - sloping line), demand curves d₁ (lower) and d₂ (upper, right - shifted from d₁), price on y - axis (p₁, p₂), quantity on x - axis (q₂, q₁), equilibrium points at (q₂,p₁) for d₁ and (q₁,p₂) for d₂ intersecting supply
To determine the change, we analyze the demand curves (\(D_1\) and \(D_2\)) and the supply curve (which remains unchanged). The demand curve shifts from \(D_1\) to \(D_2\), moving to the right. A rightward shift of the demand curve indicates an increase in demand (more quantity demanded at each price level). The supply curve does not shift, so supply - related options (decrease/increase in supply) are incorrect. A leftward shift would be a decrease in demand, but here it's a rightward shift.
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an increase in demand