Economics · May / June 2023 · Paper 11 · Question 5
2281Demand
The diagram shows the effect of a decrease in price on the demand for a product. [diagram: price on vertical axis, quantity demanded on horizontal axis, downward-sloping demand curve D-D, points P1 and P2 on price axis, Q1 and Q2 on quantity axis, arrow pointing down-right along the demand curve from (Q1, P1) to (Q2, P2)] What does the arrow on the diagram illustrate?
- Acontraction in demand
- Bdecrease in demand
- Cextension in demand
- Dincrease in demand
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Correct answer: C. extension in demand
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