Figure 3-12 -In Figure 3-12, suppose D₁ and S₁ indicate initial conditions in the market for ice cream. Which of the following changes would tend to shift this market from D₁ to D₂? A) an increase in the price of milk, an ingredient used to produce ice cream B) an increase in the price of frozen yogurt, a substitute for ice cream C) a decrease in the price of sugar, an ingredient used to produce ice cream D) a decrease in consumer income

Question

Quizplus · Accepted Answer

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

Figure 3-12 -In Figure 3-12, Suppose D1 and S1 Indicate Initial Conditions

Figure 3-12 -In Figure 3-12, Suppose D₁ and S₁ Indicate Initial Conditions