Figure 4-4

-Assume that Figure 4-4 shows demand for orange juice.An increase in the price of soda will change demand from
A)D₁ to D₂.
B)D₂ to D₁ .
C)D₃ to D₂.
D)D₃ to D₁ .

Question

Figure 4-4
 
-Assume that Figure 4-4 shows demand for orange juice.An increase in the price of soda will change demand from
A)D₁ to D₂. 
B)D₂ to D₁ . 
C)D₃ to D₂. 
D)D₃ to D₁ .

Quizplus · Accepted Answer

An increase in the price of soda will make soda more expensive, which will make orange juice a more attractive substitute. This will increase the demand for orange juice, shifting the demand curve from D₁ to D₂.

Figure 4-4 -Assume That Figure 4-4 Shows Demand for Orange Juice.An Increase