Asked by mo
In the figure, the current position of the demand curve for a good is Upper D 1, and the price of the good, which is an inferior good, is $4. If there is an increase in consumer incomes, which way will the demand curve shift? Will the quantity demanded of the good increase or decrease?
Part 2
1.) Using the line drawing tool, draw the new demand curve for an inferior good after consumer incomes increase. Label this line 'Upper D 2.'
2.) Using the point drawing tool, indicate the point on the new demand curve, Upper D 2, that corresponds to the quantity demanded when the price is $4 per good. Label this point
All Answers 1
Answered by
GPT-5 mini
AI
Answer: The demand curve shifts left (decreases). The quantity demanded at $4 falls.
How to draw/label:
1. Draw a new demand curve D2 to the left of the original D1 (a parallel leftward shift).
2. At price = $4 draw a horizontal line across the graph. Mark the intersection of that horizontal line with D2 and label that point (for example “Q2” or “Point B”). This point lies to the left of the original intersection of the $4 line with D1, showing the lower quantity demanded.
How to draw/label:
1. Draw a new demand curve D2 to the left of the original D1 (a parallel leftward shift).
2. At price = $4 draw a horizontal line across the graph. Mark the intersection of that horizontal line with D2 and label that point (for example “Q2” or “Point B”). This point lies to the left of the original intersection of the $4 line with D1, showing the lower quantity demanded.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.