This graph shows how the demand for apples changed following positive news reports about the nutritional value of apples. Curve AB shows the demand before the news reports, while curve XY illustrates the demand after the news reports. Study the graph, and describe how the demand curve moved.

A shift in the demand curve occurs when a variable, other than price, affects demand.

A shift to the left means that demand is falling, while a shift to the right means that demand is rising.

In this case, positive news about the nutritional value of apples will shift the demand curve of apples to the right, because more people will want to buy apples in order to take advantage of their nutritional qualities.

For this reason, the XY demand curve will represent a shift to the right of the previous AB demand curve.

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wilsons 14 points

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