The figure given below represents the equilibrium price and output in the market for restaurant meals and delivery meals.
Figure 4.1

-Refer to Figure 4.1. The demand for Restaurant Meals shift in one direction while the demand for Delivery meals shift in another direction. This implies:
A) the demand for Restaurant Meals increased while that for Delivery Meals decreased.
B) the demand for Restaurant Meals decreased while that for Delivery Meals increased.
C) the demand for Restaurant Meals increased while that for Delivery Meals increased.
D) the demand for Restaurant Meals decreased while that for Delivery Meals decreased.
E) the demand for Restaurant Meals and the demand for Delivery Meals adds up to 1.

Question

The figure given below represents the equilibrium price and output in the market for restaurant meals and delivery meals.
Figure 4.1
 
-Refer to Figure 4.1. The demand for Restaurant Meals shift in one direction while the demand for Delivery meals shift in another direction. This implies:
A) the demand for Restaurant Meals increased while that for Delivery Meals decreased. 
B) the demand for Restaurant Meals decreased while that for Delivery Meals increased. 
C) the demand for Restaurant Meals increased while that for Delivery Meals increased. 
D) the demand for Restaurant Meals decreased while that for Delivery Meals decreased. 
E) the demand for Restaurant Meals and the demand for Delivery Meals adds up to 1.

Quizplus · Accepted Answer

If the demand for Restaurant Meals shifted to the left (decreased) and the demand for Delivery Meals shifted to the right (increased), then the equilibrium price would decrease and the equilibrium quantity would increase for Delivery Meals. On the other hand, the equilibrium price and quantity for Restaurant Meals would both decrease. Therefore, the best choice is B.

The Figure Given Below Represents the Equilibrium Price and Output