Assume that the graphs show a competitive market for the product stated in the question. Select the graph above that best shows the change in the market speciﬁed in the following
Situation: the market for chicken, when the price of a substitute, such as beef, decreases.

Question

Assume that the graphs show a competitive market for the product stated in the question.  Select the graph above that best shows the change in the market speciﬁed in the following
Situation: the market for chicken, when the price of a substitute, such as beef, decreases.

Quizplus · Accepted Answer

When the price of a substitute (beef) decreases, consumers are more likely to switch to buying chicken, leading to an increase in demand for chicken. This is shown in graph B where there is a shift in the demand curve to the right, resulting in an increase in equilibrium quantity and price. Graph A and C show a decrease in demand for chicken, which is not consistent with the given situation. Graph D shows an increase in supply, which is also not consistent with the given situation.

Assume That the Graphs Show a Competitive Market for the Product