Imagine that the curves shown in the accompanying figure represent two demand cu
ID: 1139251 • Letter: I
Question
Imagine that the curves shown in the accompanying figure represent two demand curves for ribeye steaks. The movement from point A to B on D is caused by O A. a decrease in the price of ribeye steaks. O B. an increase in the price of ribeye steaks. C. an increase in the number of buyers. Assuming ribeye steaks are normal goods, indicate which of the following would cause a movement from point A to C. (Check all that apply) D2 A. A decline in vegetarianism. B. A rise in the price of A1 steak sauce. C. A rise in buyer incomes. D. The expectation of a lower future price for ribeye steaks. D1 QuantityExplanation / Answer
1.
A
Explanation:
The movement along the demand curve takes place due to the change in the price. Since, the movement is from A to B on the same demand curve, then it shows the decrease in price at B from price at A.
2.
A
C
Explanation:
Decrease in vegetarianism, will increase the demand of ribeye steaks and demand curve will shift to the right from A to C. Further, the increase in income will also give the same effect and demand curve will shift to the right.