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WAEC Economics 1992 Question 22

Question 22

Theory of Demand

The above diagram represents

Diagram for this question
  1. A.an increase in demand
  2. B.an increase in quantity supplied
  3. C.a decrease in quantity demanded
  4. D.a decrease in demand
  5. E.a change in price.
Show the answer and explanation

Answer: A (an increase in demand)

Explanation

The demand curve shifts from Do to D1 (to the right): at the same price P more is demanded (Q2 instead of Q1), an increase in demand.