Asked by
Ashley Willingham
on Dec 08, 2024
Verified
Refer to Figure 3.1. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from D0 to D1?
A) an increase in income, assuming that Dr. Pepper is a normal good
B) a decrease in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper
C) an increase in the price of Dr. Pepper
D) an increase in the price of sugar used to make Dr. Pepper
Demand Shift
A change in the quantity of a product that consumers are willing and able to buy at each and every price level, caused by factors other than the product's price.
Normal Good
A good for which demand increases as consumer income rises and decreases when consumer income falls.
- Understand the effects of changes in income and prices on market demand and supply.
Verified Answer
AC
Learning Objectives
- Understand the effects of changes in income and prices on market demand and supply.