The figure given below represents the equilibrium price and output in the market for restaurant meals and delivery meals. Figure 4.1
- Refer to Figure 4.1.Which of the following is represented by this figure?
A)Delivery meals and restaurant meals are complementary goods.
B)When producers of delivery and restaurant meals change their preferences,the consumers respond.
C)The increase in demand for delivery meals could have been caused by a change in consumers' tastes.
D)The fall in demand for restaurant meals was caused by an increase in the price for restaurant meals.
E)The demand for delivery meals is less elastic than that for restaurant meals.

Question

The figure given below represents the equilibrium price and output in the market for restaurant meals and delivery meals. Figure 4.1 
- Refer to Figure 4.1.Which of the following is represented by this figure?
A)Delivery meals and restaurant meals are complementary goods. 
B)When producers of delivery and restaurant meals change their preferences,the consumers respond. 
C)The increase in demand for delivery meals could have been caused by a change in consumers' tastes. 
D)The fall in demand for restaurant meals was caused by an increase in the price for restaurant meals. 
E)The demand for delivery meals is less elastic than that for restaurant meals.

Quizplus · Accepted Answer

The figure shows a decrease in demand for restaurant meals and an increase in demand for delivery meals, which could be caused by a change in consumers' tastes. The equilibrium price for restaurant meals has fallen while the equilibrium price for delivery meals has increased. Complementarity of goods or the preferences of producers do not seem to be the main factors behind the changes in the market. The elasticity of demand is not indicated by the figure.

The Figure Given Below Represents the Equilibrium Price and Output