Figure 3-1

-Refer to Figure 3-1.A decrease in the price of a substitute good would be represented by a movement from
A)A to B.
B)B to A.
C)D₁ to D₂.
D)D₂ to D₁.

Question

Figure 3-1
 
-Refer to Figure 3-1.A decrease in the price of a substitute good would be represented by a movement from
A)A to B. 
B)B to A. 
C)D₁ to D₂. 
D)D₂ to D₁.

Quizplus · Accepted Answer

A decrease in the price of a substitute good would decrease the demand for the original good, causing a leftward shift in the demand curve from D₂ to D₁.

Figure 3-1 -Refer to Figure 3-1.A Decrease in the Price of a the Price