Figure 3-7 -In Figure 3-7, suppose D₁ and S₁ indicate the initial conditions in the market for ice cream. Which of the following changes would tend to cause the shift from D₁ to D₂ in the market for ice cream? A) a decrease in the price of sugar, an ingredient used to produce ice cream B) an increase in the price of frozen yogurt, a substitute for ice cream C) abnormally cold weather that decreased consumer desire for ice cream D) an increase in the price of milk, an ingredient used to produce ice cream

Question

Quizplus · Accepted Answer

An increase in the price of frozen yogurt, a substitute for ice cream, would likely cause consumers to buy more ice cream instead, shifting the demand curve from D1 to D2.

Figure 3-7 -In Figure 3-7, Suppose D1 and S1 Indicate the Initial

Figure 3-7 -In Figure 3-7, Suppose D₁ and S₁ Indicate the Initial