4.2 Demand Curve Shifts

Multiple Choice

What is the significance of understanding how and why demand curves shift in economics?

• It helps predict consumer behavior and market trends.

• It shows how to set prices for goods.

• It explains how to increase production efficiency.

• It determines government tax policies.

Multiple Choice

Based on the graph and explanation, what happens to the demand curve when demand increases and when it decreases?

• It shifts right when demand increases and left when demand decreases.

• It shifts left when demand increases and right when demand decreases.

• It becomes steeper when demand increases and flatter when demand decreases.

• It does not shift at all.

Open Ended

List and briefly explain two factors that can cause a demand curve to shift, as described in the lesson.

Open Ended

Do you have any questions about demand curves or would you like to learn more about what causes them to shift?