A change in price never shifts the demand curve. In this figure an increase in price results in a movement "up" the demand curve. The fall in the quantity demanded from Q1 to Q2 is sometimes called a contraction in demand. The amount of demand depends on: the price of the good; the income of consumers; the demand for alternative goods that could be used (substitutes); the demand for goods used at the same time (complements); whether people like the good (consumer taste).
The Federal Communications Commission ruled to cut network access prices by putting a price ceiling on how much can be charged and made it easier for competitors to lease certain parts of their network at discounts. Also, there were some unpredicted expenses from higher repair cost because of bad weather and some changes in accounting for retiree health care benefits that should affect their market share price. Obviously neither of these problems can be resolved by increasing the price; therefore they anticipate a smaller profit than predicted. It is impossible to
References: BizEd Website Graphs, retrieved May 26, 2005 http://www.bized.ac.uk/learn/economics/markets/mechanism/notes.htm Bloomberg News Service, The New York Times – Knowledge Network, September 24, 2003 retrieved May 25, 2005 http://college4.nytimes.com/guests/articles/2003/09/24/1114281.xml Gross, G. Nichols, R., (IDG News Service) PC World net article, retrieved May 25, 2005. http://pcworld.about.com/news/Feb142005id119667.htm King, Arnold, The Library of Economics and Liberty, Retrieved May 30, 2005 http://www.econlib.org/library/Enc/PriceControls.html