A Level Economics (9708)•9708/12/M/J/19

Explanation
Demand Curve Shifts vs. Movements Steps:
- Recall that the demand curve shows quantity demanded at different prices; shifts occur due to non-price determinants like income or related goods' prices.
- A movement along the curve happens when only the good's own price changes.
- Without the diagram, D1's direction (left or right) is unknown, making it impossible to identify the exact cause.
- Options A–C affect non-price factors (substitutes, advertising, income), potentially shifting demand; D affects price, causing movement.
Why D is incorrect:
- A decrease in good G's price causes a movement down along the existing demand curve, not a shift to a new curve like D1 (law of demand).
Why the others are wrong:
- A: Could shift demand left if D1 is leftward, but direction unknown.
- B: Reduces demand, potentially left shift, but depends on D1.
- C: Increases demand for normal good, potentially right shift, but depends on D1.
Not enough information. Final answer: Not enough information.
Topic: Demand and supply curves
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