Interpreting demand graphs is a key skill in understanding how markets respond to changes in economic factors. Demand refers to the entire relationship between price and quantity demanded, shown as a downward-sloping curve, while quantity demanded is the specific amount at a given price, and the law of demand states that as price rises, quantity demanded falls, ceteris paribus. The graph shows a movement along the demand curve from point A to point B, which implies an increase in quantity demanded without a shift in the curve itself. The correct choice, a decrease in the price of the good causing quantity demanded to rise, is justified because moving down the curve reflects consumers buying more at a lower price. A common misconception is confusing a movement along the curve with a shift of the curve, but shifts occur only due to non-price determinants. To apply this broadly, always check if the change is in price, which affects quantity demanded, or in a determinant like tastes, which shifts the entire curve. Additionally, remember that rightward shifts indicate increased demand and leftward shifts indicate decreased demand, and always read the axes to confirm price is vertical and quantity horizontal.

Interpreting demand graphs is a key skill in understanding how markets respond to changes in economic factors. Demand refers to the entire relationship between price and quantity demanded, shown as a downward-sloping curve, while quantity demanded is the specific amount at a given price, and the law of demand states that as price rises, quantity demanded falls, ceteris paribus. The graph shows a specific point on the demand curve at a price of $4 (in hundreds), indicating the corresponding quantity of gym memberships demanded without any shift or movement. The correct choice, 30 memberships, is justified by locating the intersection of the $4 price line with the demand curve and reading the quantity from the horizontal axis. A common misconception is that a price change shifts the demand curve, but actually, price changes cause movements along the curve, not shifts. To apply this broadly, always check if the change is in price, which affects quantity demanded, or in a determinant like income, which shifts the entire curve. Additionally, remember that rightward shifts indicate increased demand and leftward shifts indicate decreased demand, and always read the axes to confirm price is vertical and quantity horizontal.

This question tests your ability to interpret demand graphs, specifically identifying movements along a demand curve versus shifts of the curve. Demand is the entire relationship between price and quantity demanded shown by the curve, while quantity demanded is the specific amount consumers will buy at a given price; the law of demand tells us these are inversely related. The graph shows the market moving from point A to point B along the same demand curve D₁, which occurs when only the price changes while all other factors remain constant. Since the ticket price falls and we move down along D₁ to point B, this represents an increase in quantity demanded (not a shift in demand), making choice C correct. A common error is confusing movements along the curve (caused by price changes) with shifts of the entire curve (caused by changes in determinants like income, tastes, or prices of related goods). To analyze demand graphs, always check whether you're looking at different points on the same curve (movement along) or comparing two different curves (shift). When price alone changes, you move along the existing curve; when any other determinant changes, the entire curve shifts.

Interpreting demand graphs is a key skill in understanding how markets respond to changes in economic factors. Demand refers to the entire relationship between price and quantity demanded, shown as a downward-sloping curve, while quantity demanded is the specific amount at a given price, and the law of demand states that as price rises, quantity demanded falls, ceteris paribus. The graph shows a specific point on the demand curve at a price of $6, indicating the corresponding quantity demanded without any shift or movement described. The correct choice, 20 units, is justified by locating the intersection of the $6 price line with the demand curve and reading the quantity from the horizontal axis. A common misconception is that a price change shifts the demand curve, but actually, price changes cause movements along the curve, not shifts. To apply this broadly, always check if the change is in price, which affects quantity demanded, or in a determinant like income, which shifts the entire curve. Additionally, remember that rightward shifts indicate increased demand and leftward shifts indicate decreased demand, and always read the axes to confirm price is vertical and quantity horizontal.

This question tests your ability to interpret demand graphs and distinguish between movements along a curve versus shifts of the curve. Demand represents the complete price-quantity relationship shown by the curve, while quantity demanded is the specific amount consumers buy at one price; the law of demand indicates these are inversely related. The graph shows movement from point A to point B along the same demand curve D₁, which occurs when only the tablet's price changes while all other determinants remain constant. Since price decreases and we move down along D₁ from A to B, this represents an increase in quantity demanded (not a demand shift), making choice C correct. A common error is thinking that price decreases shift demand rightward, but a good's own price changes only cause movements along the existing curve, never shifts. To correctly interpret demand graphs, always check if you're comparing points on one curve (movement along from price change) or comparing different curves (shift from determinant change). When price falls and you move down a demand curve, quantity demanded increases following the law of demand.