Asked by Xitlaly Vicuna on Jul 18, 2024
Verified
The following figure shows the demand curves for baby formula.Which of the following changes is likely to happen if the price of baby formula decreases?
A) A shift in the demand curve from D1 to D2
B) A movement along the demand curve D1 from point a to point b
C) A shift in the demand curve from D2 to D1
D) A movement along the demand curve D2 from point d to point c
E) A movement from point b on the demand curve D1 to point c on the demand curve D2
Demand Curves
Graphical representations that depict the relationship between the price of a product and the quantity of that product consumers are willing to purchase at various price points.
Baby Formula
A manufactured food designed and marketed for feeding to babies and infants, usually prepared for bottle-feeding or cup-feeding from powder or liquid.
Price Decrease
a reduction in the cost of goods or services, often triggered by factors such as increased supply, reduced demand, or competitive pricing strategies.
- Discriminate between the alteration in the quantity demanded due to price changes and the transition of the demand curve itself.
Verified Answer
AF
Anton FlaviusJul 22, 2024
Final Answer :
B
Explanation :
A decrease in the price of baby formula would lead to a movement along the same demand curve, as consumers will be willing to buy more baby formula at a lower price. This movement would be from point a to point b on the demand curve D1. There would not be a shift in the demand curve itself.
Learning Objectives
- Discriminate between the alteration in the quantity demanded due to price changes and the transition of the demand curve itself.