Figure: Shifting Demand in the Diagram, Which of the Following

question 168

Multiple Choice

Figure: Shifting Demand In the diagram, which of the following factors would cause the demand curve to shift from D₁ to D₂?

• A) an increase in the price of a substitute good
• B) a decrease in the price of a complement good
• C) an increase in the population
• D) an increase in income if this is an inferior good

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Definitions:

Cycle of Debt

A repetitive sequence where a borrower incurs new debt to pay off existing debts, often leading to worsening financial conditions.

Prevented Industrialization

The hindrance or delay of the industrial development process in a country or region, often due to external or internal factors.

Colonization

The act of establishing control over a foreign land and its people by a country or group, often leading to exploitation and cultural assimilation.

Abundant Natural Resources

The availability of a large quantity of natural materials that can be utilized for economic gain, such as minerals, forests, and water.