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.This implies:
A)the demand for Restaurant Meals increased while that for Delivery Meals decreased.
B)the demand for Restaurant Meals decreased while that for Delivery Meals increased.
C)the demand for Restaurant Meals increased while that for Delivery Meals increased.
D)the demand for Restaurant Meals decreased while that for Delivery Meals decreased.
E)the demand for Restaurant Meals and the demand for Delivery Meals adds up to 1.

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.This implies:
A)the demand for Restaurant Meals increased while that for Delivery Meals decreased. 
B)the demand for Restaurant Meals decreased while that for Delivery Meals increased. 
C)the demand for Restaurant Meals increased while that for Delivery Meals increased. 
D)the demand for Restaurant Meals decreased while that for Delivery Meals decreased. 
E)the demand for Restaurant Meals and the demand for Delivery Meals adds up to 1.

Quizplus · Accepted Answer

The equilibrium point is where the demand curve and supply curve intersect, which determines the price and quantity of both restaurant meals and delivery meals in the market. If the demand for restaurant meals shifts to the left (decreases) while the demand for delivery meals shifts to the right (increases), the equilibrium output of restaurant meals decreases while the equilibrium output of delivery meals increases. Therefore, the best choice is B, where the demand for Restaurant Meals decreased while that for Delivery Meals increased.

The Figure Given Below Represents the Equilibrium Price and Output