Use the figure below to answer the following questions.

Figure 1A.4.5
-Consider the following information on cola sales by number of cases for a typical university residence floor: Temp. Price (dollars per case)

Refer to Figure 1A.4.5. Which one of the following represents what happens when the temperature rises from 20°C to 25°C?
A)The curve shifts from A to B.
B)The curve shifts from C to B.
C)The curve shifts from B to C.
D)The curve shifts along line B.
E)The curve shifts along line C.

Question

Use the figure below to answer the following questions.
  
Figure 1A.4.5
-Consider the following information on cola sales by number of cases for a typical university residence floor: Temp. Price (dollars per case)

Refer to Figure 1A.4.5. Which one of the following represents what happens when the temperature rises from 20°C to 25°C?
A)The curve shifts from A to B. 
B)The curve shifts from C to B. 
C)The curve shifts from B to C. 
D)The curve shifts along line B. 
E)The curve shifts along line C.

Quizplus · Accepted Answer

As the temperature rises from 20°C to 25°C, the price of the cola stays the same, but the number of cases sold decreases. This means that the demand for cola has decreased due to the temperature change. As a result, the demand curve shifts to the left from curve B to curve C.

Use the Figure Below to Answer the Following Questions