A shift from demand curve D to D' illustrates a______ and could have been caused by __________.
Select one:
a. decrease in demand, changes in preferences.
b. increase in demand, a decrease in the price of a substitute product.
c. increase in demand, a price ceiling.
d. decrease in quantity demanded, an increase in price.
e. increase in demand, the consumers expecting higher prices in the future.

Question

justus · Answer

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justus · Answer

I believe it is D

justjm · Answer

This is a shift in demand, so there's no change in quantity demanded but a increase in demand.

A is wrong
B - a decrease in the price of a substitute will decrease the demand of the current product. They are proportional.
C - A price ceiling wouldn't shift the demand, but would change the quantity of demand
D is wrong
E - this is a determinant of demand. If consumers expect higher prices in the future, the demand will skyrocket at the current moment. This would be correct.

THink about it. If you think that the price of the XBox will increase next month, and you want to buy it soon, would you buy it next month or now?

justus · Answer

Thank you so much <3 <3 <3 <3 I see

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