Figure 1A.1 :
-Refer to Figure 1A.1. Assume that the graph in this figure represents the demand and supply curves for orange juice. An increase in the price of apple juice, which is a substitute for orange juice, would be represented by a shift from
A) Demand 1 to Demand 2.
B) Demand 2 to Demand 1.
C) Supply 1 to Supply 2.
D) Supply 2 to Supply 1.

Question

Figure 1A.1 : 
-Refer to Figure 1A.1. Assume that the graph in this figure represents the demand and supply curves for orange juice. An increase in the price of apple juice, which is a substitute for orange juice, would be represented by a shift from
A) Demand 1 to Demand 2. 
B) Demand 2 to Demand 1. 
C) Supply 1 to Supply 2. 
D) Supply 2 to Supply 1.

Quizplus · Accepted Answer

An increase in the price of apple juice, a substitute for orange juice, would likely cause consumers to buy more orange juice, shifting the demand curve for orange juice to the right, from Demand 1 to Demand 2.