Question

suppose that demand is initially d1, but, following a change in consumer preferences, demand shifts to d2. note that the two demand curves are parallel. which of the following statements is true? a) demand increases by 15 units. b) quantity demanded increases by 30 units. c) equilibrium quantity increases by 15 units. d) supply increases by 15 unitsa

Answer 1

When a demand curve shifts, the intersection with a supply curve will result in a new equilibrium price and quantity. In this case, the demand shifts from D1 to D2 due to a change in consumer preferences. The correct statement is that demand increases by 15 units. Therefore, the correct option is a) demand increases by 15 units.

Step-by-step explanation:

When a demand curve shifts, the intersection with a supply curve will result in a new equilibrium price and quantity. In this case, the demand shifts from D1 to D2 due to a change in consumer preferences.

Since the two demand curves are parallel, the quantity demanded does not change.

Therefore, statement b) and c) are incorrect. In addition, supply is not mentioned to have changed, so statement d) is also incorrect. The correct statement is a) demand increases by 15 units.