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.Which of the following is represented by this figure?
A)Delivery meals and restaurant meals are complementary goods.
B)When producers of delivery and restaurant meals change their preferences, the consumers respond.
C)The increase in demand for delivery meals could have been caused by a change in consumers' tastes.
D)The fall in demand for restaurant meals was caused by an increase in the price for restaurant meals.
E)The demand for delivery meals is less elastic than that for restaurant meals.

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.Which of the following is represented by this figure?
A)Delivery meals and restaurant meals are complementary goods. 
B)When producers of delivery and restaurant meals change their preferences, the consumers respond. 
C)The increase in demand for delivery meals could have been caused by a change in consumers' tastes. 
D)The fall in demand for restaurant meals was caused by an increase in the price for restaurant meals. 
E)The demand for delivery meals is less elastic than that for restaurant meals.

Quizplus · Accepted Answer

The figure shows a shift in demand for delivery meals to the right while there is a shift in demand for restaurant meals to the left. This can be attributed to a change in consumers' tastes or preferences, which is represented by a shift in the demand curve. Therefore, choice C is the best answer. Choices A, B, D, and E are incorrect because they do not accurately reflect the information presented in the figure.

The Figure Given Below Represents the Equilibrium Price and Output