-The figure above shows the market for iPods.Which of the following shifts the demand curve from D? to D??
A) a decrease in the price of Zunes, a substitute for iPods
B) an increase in the price of iPods
C) a requirement that all students at universities have an iPod
D) a decrease in the price of iPods
E) a decrease in people's incomes if iPods are a normal good

Question

-The figure above shows the market for iPods.Which of the following shifts the demand curve from D? to D??
A) a decrease in the price of Zunes, a substitute for iPods 
B) an increase in the price of iPods 
C) a requirement that all students at universities have an iPod 
D) a decrease in the price of iPods 
E) a decrease in people's incomes if iPods are a normal good

Quizplus · Accepted Answer

A decrease in the price of Zunes, a substitute for iPods, will shift the demand curve for iPods to the left, from D1 to D2. This is because consumers will now prefer to buy the cheaper Zunes instead of iPods, reducing the demand for iPods.

-The Figure Above Shows the Market for IPods