Asked by
Kennedy Donovan
on Nov 04, 2024Verified
Refer to Figure 3.2. Which of the following would be most likely to cause the demand for macaroni and cheese to shift from D0 to D1?
A) a decrease in the price of macaroni and cheese
B) an increase in the price of flour used to make macaroni and cheese
C) a decrease in income, assuming macaroni and cheese is a normal good
D) an increase in the quantity demanded for macaroni and cheese
Normal Good
A type of good for which demand increases when consumer income rises, and falls when consumer income decreases.
Demand Shift
A change in the quantity demanded at every price point, often caused by factors like consumer preferences, income, and price of related goods.
Quantity Demanded
The cumulative quantity of a product or service that buyers are ready and capable of buying at a specific price.
- Distinguish between normal goods, inferior goods, and substitutes.
- Acknowledge the reasons behind the adjustments in the demand and supply curves.
Verified Answer
VS
Learning Objectives
- Distinguish between normal goods, inferior goods, and substitutes.
- Acknowledge the reasons behind the adjustments in the demand and supply curves.