Figure 4-7
-Refer to Figure 4-7.If the demand curve for Good X shifts from Da to Db,then
A)firms would be willing to supply less of Good X than before at each possible price.
B)people are willing to buy more of Good X than before at each possible price.
C)people's incomes must have decreased.
D)the price of Good X has decreased.

Question

Figure 4-7 
-Refer to Figure 4-7.If the demand curve for Good X shifts from Da to Db,then
A)firms would be willing to supply less of Good X than before at each possible price. 
B)people are willing to buy more of Good X than before at each possible price. 
C)people's incomes must have decreased. 
D)the price of Good X has decreased.

Quizplus · Accepted Answer

If the demand curve for Good X shifts from Da to Db, it means that at each price, people are willing to buy more of Good X than before. This is because the demand curve has shifted to the right, indicating an increase in demand. Therefore, choice B is correct. Choice A is incorrect because if demand is increasing, firms would be willing to supply more of Good X than before to meet the higher demand. Choice C is incorrect because there is no information given about changes in people's incomes. Choice D is incorrect because there is no information given about changes in the price of Good X.

Figure 4-7 -Refer to Figure 4-7.If the Demand Curve for Good X