Refer to the Figure

Economics Dec 15, 2020

Refer to the Figure. When the economy moves from Point B to Point A. there has been $4 is us E ? B A Dz D 0 Q an decrease in quantity demanded and a increase in quantity supplied an increase in demand O an increase in demand and a increase in supply a decrease in demand

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Ans.- (D)

When we move from point B to point A, we are moving on a different demand curve to the left i.e. demand curve is shifting to the left. So, there is a decrease in demand.

( Note that when we move from one demand curve to another there is a change in demand and when we move along the same demand curve there is a change in quantity demanded).

When we move from B to A , there is also a decrease in quantity supplied as we are moving along the same supply curve from B to A.

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