Final answer:
A shift from the original demand curve Do to D1 indicates either an increase or decrease in the product's demand due to a change in demand determinants. A shift to the right signifies an increase, while a shift to the left indicates a decrease in demand.
Step-by-step explanation:
When analyzing the shift from the original demand curve, labeled as Do, to the new demand curve, D1, we can determine that a change in demand determinants is taking place. This shift indicates that the demand for the product has either increased or decreased. An increase in demand is represented by a shift to the right of the demand curve, meaning the quantity demanded would be higher at every price point. Conversely, a shift to the left signifies a decrease in demand. The concept of demand shift is crucial in understanding how external factors, such as increased consumer income, technological innovations, or changes in consumer preferences, can affect the entire demand curve, rather than just the quantity demanded at a specific price.
Using the provided information, the shift from Do to D1, labeled Shift 3, and the subsequent move of equilibrium from E2 to E3 demonstrates a change in the market conditions, affecting the demand for the product. This could result from various factors, such as a high profile event boosting a product's popularity, an innovative technological feature, or changes in the broader economy that affect consumers' ability to purchase goods.