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A-Level Economics · Shift in supply diagram question

After the shift, what has happened to DEMAND?

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The diagram

The answer

Demand is unchanged — there is an EXTENSION of demand along D from E to F. Buyers moved ALONG D, they did not move D. 'Extension of demand' earns the mark; 'demand increased' does not. Only supply shifted. Consumers simply slid down the unchanged demand curve from E to F because the price fell — an EXTENSION of demand. Writing 'demand increased' here is the single most common way students throw away an easy mark.

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This is one of 6 questions on the shift in supply diagram — every corner lettered, every wrong answer diagnosed.

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