Figure 3-7
-Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for frozen yogurt.Which panel describes what happens in the market for frozen yogurt when the price of ice cream,a substitute product,increases?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)Panel (d)

Question

Figure 3-7 
-Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for frozen yogurt.Which panel describes what happens in the market for frozen yogurt when the price of ice cream,a substitute product,increases?
A)Panel (a) 
B)Panel (b) 
C)Panel (c) 
D)Panel (d)

Quizplus · Accepted Answer

Panel (c) illustrates an increase in demand for frozen yogurt, which would occur if the price of a substitute product like ice cream increases. This is because consumers would likely switch to frozen yogurt as ice cream becomes more expensive, shifting the demand curve for frozen yogurt to the right.

Figure 3-7 -Refer to Figure 3-7.Assume That the Graphs in This Figure