Question

The graph shows a demand curve.

A graph has Quantity Demanded on the x-axis, from 0 to 60 in increments of 10, and Price on the y-axis, from 0 to 20 dollars in increments of 2 dollars and 50 cents. 2 lines with identical negatives slopes are shown. Line D is slightly higher than line D 1.

What change in demand does the graph show?

an increase in demand reflected by a left-sided shift
a decrease in demand reflected by a left-sided shift
an increase in demand reflected by a right-sided shift
a decrease in demand reflected by a right-sided shift

Answers

GPT-4o mini
The graph shows two demand curves, with Line D being higher than Line D1. In the context of demand curves, when a curve shifts to the right, it indicates an increase in demand, as consumers are willing to purchase more of the good at each price level. Conversely, if a demand curve shifts to the left, it indicates a decrease in demand.

Since Line D is higher than Line D1, this reflects an increase in demand. Therefore, the correct interpretation of the graph is:

**an increase in demand reflected by a right-sided shift.**

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