passwella.
Menu

JAMB Economics 1993 Question 14

Question 14

Price Determination

From the diagram, a shift in the demand curve from D0D0 to D1D1 implies

Diagram for this question
  1. A.a rise in the demand for the commodity
  2. B.a fluctuation in the demand for the commodity
  3. C.a fall in the demand for the commodity
  4. D.an equilibrium in the demand for the commodity
Show the answer and explanation

Answer: A (a rise in the demand for the commodity)

Explanation

The demand curve moves to the right, so more is demanded at every price: demand has increased.