4. Use the graph below to answer the question. Based on this graph which phrase describes the result of a shift in demand from D1 to D2? a. Since demand has decreased, the equilibrium price has decreased b. Since demand has decreased, the equilibrium price has increased c. Since demand has increased, the equilibrium price has decreased d. Since demand has increased, the equilibrium price has increased

To analyze the impact of a shift in demand from to on the equilibrium price, we need to understand the basic principles of supply and demand in economics.1. **Demand Curve Shift**: A shift in the demand curve can either be to the right (increase in demand) or to the left (decrease in demand). - **Rightward Shift (Increase in Demand)**: If the demand curve shifts to the right, it indicates that at every price level, the quantity demanded is higher than before. - **Leftward Shift (Decrease in Demand)**: If the demand curve shifts to the left, it indicates that at every price level, the quantity demanded is lower than before.2. **Equilibrium Price**: The equilibrium price is determined at the intersection of the supply and demand curves. When the demand curve shifts: - **Increase in Demand**: The new intersection point with the supply curve will be at a higher price level. - **Decrease in Demand**: The new intersection point with the supply curve will be at a lower price level.Given the options:- Option (a) states that a decrease in demand leads to a decrease in equilibrium price.- Option (b) states that a decrease in demand leads to an increase in equilibrium price.- Option (c) states that an increase in demand leads to a decrease in equilibrium price.- Option (d) states that an increase in demand leads to an increase in equilibrium price.If the graph shows a shift from to and is to the right of , it indicates an increase in demand. Consequently, the equilibrium price will increase.