Question

Critically evaluate: "In comparing the two equilibrium positions in the diagram below, I note that a smaller amount is actually demanded at a lower price. This refutes the law of demand."A. A decrease in demand from D1 to D2 results in . B. This causes the price to . C. This change in price results in in quantity demanded along the D2 demand curve. D. This change in price results in in quantity supplied. E. The new equilibrium has a and a when compared to the original equilibrium. F. Does this refute the law of demand: . G. Why: (Because the new equilibrium has a lower price and quantity OR Because there was a change in demand).

Answer 1

Answer:

a. A decrease in demand from D1 to D2 results in- excess supply.

b. This causes the price to- fall

c. This change in price results in in quantity demanded along the D2 demand curve.- an increase

d. This change in price results in in quantity supplied.- a decrease

e. The new equilibrium has a and a when compared to the original equilibrium. -Lower price, lower quanity

f. Does this refute the law of demand: . No

g. Why: Because there was a change in demand

Explanation: