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JAMB Economics 1979 Question 18

Question 18

Theory of Demand

In the above diagram DoDo is the original demand curve. D1D1 is

Diagram for this question
  1. A.a fall in the demand curve
  2. B.a rise in the demand curve
  3. C.an extension in the demand curve
  4. D.a contraction in the demand curve
  5. E.none of these curves.
Show the answer and explanation

Answer: B (a rise in the demand curve)

Explanation

D1D1 lies to the right of the original curve, so more is demanded at every price: the whole demand curve has risen.