Question

When quantity demanded decreases at every possible price, the demand curve has
A. not shifted; rather, the demand curve has become flatter.
B. shifted to the left.
C. not shifted; rather, we have moved along the demand curve to a new point on the same curve.
D. shifted to the right. Submit Answer Continue without saving

Answer 1

Answer:

B

Explanation:

The graph attached shows that at price1 (p1) if the quantity demanded (q1) decreases to q1*(which means that we move through the green dotted line) we move to another demand curve (D2). The same happens if we are at price 2, if the quantity demanded (q2) decreases (which means that we move through the yellow dotted line), the new point (q2*) is placed on another curve. If we continue infinitely this process with all prices, the new demanded quantities will create a new curve of demand that is at the left from the original (D1) .