Economics 2281 · O Level · Demand

Demand — practice question

The diagram illustrates the impact of a fall in price on demand for a product, as price drops from $P_1$ to $P_2$ and quantity demanded rises from $Q_1$ to $Q_2$ along the demand curve $D$. What is the arrow in the diagram showing?

  • Acontraction in demand
  • Bdecrease in demand
  • Cextension in demand
  • Dincrease in demand

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