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

-In Figure 3-3,if the initial demand for margarine were D₁,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 D₁,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

The increase in price from $0.35 to $0.40 per pound will result in a decrease in the quantity demanded of margarine, but it will not shift the entire demand curve. Therefore, the movement will be upward to the left along the original demand curve D₁.

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