Figure 4-4

-Assume that Figure 4-4 shows demand for soda.A decrease in the price of apple juice will change demand from
A)D₁ to D₂.
B)D₂ to D₁ .
C)D₂ to D₃.
D)D₁ to D₃.

Question

Figure 4-4
 
-Assume that Figure 4-4 shows demand for soda.A decrease in the price of apple juice will change demand from
A)D₁ to D₂. 
B)D₂ to D₁ . 
C)D₂ to D₃. 
D)D₁ to D₃.

Quizplus · Accepted Answer

A decrease in the price of apple juice, which is a substitute for soda, will increase the demand for apple juice and decrease the demand for soda. This will shift the demand curve for soda to the left, from D₂ to D₁.

Figure 4-4 -Assume That Figure 4-4 Shows Demand for Soda.A Decrease in for Soda.A