DDo per week Figure C 0 Bottles of Dr. Pepper Q 9. Refer to Figure C. Which of t
ID: 1135275 • Letter: D
Question
DDo per week Figure C 0 Bottles of Dr. Pepper Q 9. Refer to Figure C. Which of the following would be most likely to cause the demand for Dr. Pepper to shift from Do to D1? A) a decrease in income, assuming that Dr. Pepper is a normal good B) an increase in the price of 7-UP, assuming 7-UP is a substitute for Dr. Pepper C) a decrease in the price of Dr. Pepper D) a reduction in the price of sugar used to make Dr. Pepper 10. Suppose the demand for books goes down when the price of video games goes down. We can say that these two goods are A) complements. B) substitutes. C) unrelated goods. D) perfect substitutes.Explanation / Answer
9.Answer-A
A decrease in income reduces the purchasing power of a person and so,he can afford to consume less of both the goods.This causes his budget line to shift to the left from Do to D1.
10.B
Books and video games are substitutes.When price of video games fall people demand more video games and lower books.Thus,the demand for books fall.
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