Consider the demand for peanut butter. Which of the following would cause a move

Question

Consider the demand for peanut butter. Which of the following would cause a movement along the demand curve (that is, a change in the quantity deman butter? Check all that apply. ded) for peanut A change in the number of consumers OA change in the price of Nutella (a substitute for peanut butter) A change in the price of peanut butter Which of the following would cause a shift of the demand curve for peanut butter? Check all that apply. A change in the price of Nutella (a substitute for peanut butter) A change in the price of peanut butter A change in consumers' tastes that makes them des e more peanut butter

Explanation / Answer

1.

A movement along a demand curve is caused by a change in the price of the product itself. Hence a change in the quantity demanded of peanut butter is caused by a change in the price of peanut butter.

the correct option is (c)

2.

A shift in the demand curve is caused by all factors affecting demand except a price of the good. Hence change in consumer's preferences and the price of the substitute good would result in a shift in demand for peanut butter.

the correct options are (a) and (c)

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