Figure 4.4
-Figure 4.4 illustrates the demand for guitars. Assume that guitars and banjos are substitutes. A decrease in the price of banjos would bring about a movement from:

Question

Quizplus · Accepted Answer

According to the information given, guitars and banjos are substitutes. Therefore, a decrease in the price of banjos (assuming all else remains constant) would lead consumers to switch from buying guitars to buying banjos, resulting in a decrease in demand for guitars. This shift in demand is represented by a movement from D₁ to D₀, which is depicted in Answer D.

Figure 4.4 -Figure 4.4 Illustrates the Demand for Guitars. Assume That Guitars