Use the figure below to answer the following question(s) .
Figure 3-3

In Figure 3-3, if the initial demand for margarine were D ₁, the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as

Question

Use the figure below to answer the following question(s) .
Figure 3-3

In Figure 3-3, if the initial demand for margarine were D ₁, the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as

Quizplus · Accepted Answer

An increase in price would cause a movement along the original demand curve, not a shift in the demand curve. Therefore, the new quantity demanded would move upward to the left along the original demand curve D ₁.

Use the Figure Below to Answer the Following Question(s)