Figure: Chicken Legs In the diagram, the current demand curve for chicken legs is represented by D₁. If the price of chicken thighs, a substitute for chicken legs, decreases, the demand curve for chicken legs will:

Question

Quizplus · Accepted Answer

When the price of a substitute for a product decreases, the demand for that product decreases as well. In this case, the substitute for chicken legs is chicken thighs. As the price of chicken thighs decreases, consumers will switch to buying more chicken thighs and less chicken legs. This will result in a leftward shift of the demand curve for chicken legs, from D₁ to D₃. Therefore, the correct answer is choice B.

Figure: Chicken Legs in the Diagram, the Current Demand