Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Graph Explanation:**
The graph illustrates a demand curve for Good \( X \), represented by two lines labeled \( D1 \) and \( D2 \). Both curves are sloping downward from left to right. The initial position of the demand curve is \( D1 \), and the new position after the shift is \( D2 \), indicating a leftward shift. This shift represents a decrease in demand for Good \( X \) at each price level.
The axes are labeled as follows:
- \( P \) on the vertical axis, representing price.
- \( Q \) on the horizontal axis, representing quantity.
A horizontal arrow pointing from \( D1 \) to \( D2 \) illustrates the direction of the shift.
**Choose 1 answer:**
A. An increase in income if good \( X \) is an inferior good
B. An increase in the number of buyers of a good
C. People do not like good \( X \) as much as they did before
D. Buyers of good \( X \) expect the price of good \( X \) to decrease in the future
E. An increase in the price of good \( Y \) which is a complement to good \( X \)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4b3d18c-ff5d-4391-b364-c5eca9fb3f47%2Fabd0e20f-b77f-4708-b89d-6b44309edf90%2Fmzj4j8g_processed.png&w=3840&q=75)
Transcribed Image Text:The demand for Good \( X \) is given in the graph shown here.
### Which of the following could cause the shift of demand shown here?
**Graph Explanation:**
The graph illustrates a demand curve for Good \( X \), represented by two lines labeled \( D1 \) and \( D2 \). Both curves are sloping downward from left to right. The initial position of the demand curve is \( D1 \), and the new position after the shift is \( D2 \), indicating a leftward shift. This shift represents a decrease in demand for Good \( X \) at each price level.
The axes are labeled as follows:
- \( P \) on the vertical axis, representing price.
- \( Q \) on the horizontal axis, representing quantity.
A horizontal arrow pointing from \( D1 \) to \( D2 \) illustrates the direction of the shift.
**Choose 1 answer:**
A. An increase in income if good \( X \) is an inferior good
B. An increase in the number of buyers of a good
C. People do not like good \( X \) as much as they did before
D. Buyers of good \( X \) expect the price of good \( X \) to decrease in the future
E. An increase in the price of good \( Y \) which is a complement to good \( X \)
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