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.Which of the following impacts will it have on the quantity of Restaurant Meals and Delivery meals purchased by consumers?
A)The quantity of Restaurant Meals purchased declines while the quantity of Delivery Meals purchased rises.
B)The quantity of Restaurant Meals purchased rises while the quantity of Delivery Meals purchased declines.
C)Both the quantity of Restaurant Meals purchased and the quantity of Delivery Meals purchased declines.
D)Both the quantity of Restaurant Meals purchased and the quantity of Delivery Meals purchased increases.
E)The quantity of Restaurant Meals purchased and the quantity of Delivery Meals purchased add up to 100.

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.Which of the following impacts will it have on the quantity of Restaurant Meals and Delivery meals purchased by consumers?
A)The quantity of Restaurant Meals purchased declines while the quantity of Delivery Meals purchased rises. 
B)The quantity of Restaurant Meals purchased rises while the quantity of Delivery Meals purchased declines. 
C)Both the quantity of Restaurant Meals purchased and the quantity of Delivery Meals purchased declines. 
D)Both the quantity of Restaurant Meals purchased and the quantity of Delivery Meals purchased increases. 
E)The quantity of Restaurant Meals purchased and the quantity of Delivery Meals purchased add up to 100.

Quizplus · Accepted Answer

The figure shows that the equilibrium point for Restaurant Meals is at a higher price and lower quantity compared to the equilibrium point for Delivery Meals. If the demand for Restaurant Meals shifts in one direction (i.e. leftward), it means that consumers are willing to buy fewer Restaurant Meals at each price level. On the other hand, if the demand for Delivery Meals shifts in the opposite direction (i.e. rightward), it means that consumers are willing to buy more Delivery Meals at each price level. As a result, it would lead to a decline in the quantity of Restaurant Meals purchased while the quantity of Delivery Meals purchased rises. Therefore, the correct answer is option A.

The Figure Given Below Represents the Equilibrium Price and Output