ON SE HOME CONTENT RESOURCES COMMUNICAn Homework C4 Quiz ft

ON SE HOME CONTENT RESOURCES COMMUNICAn Homework C4 Quiz ft: 1:15:56lindsey gregory: Attempt 2 Price 5 10 15 Quaxtity 20 25 Refer to Figure 4-8. Suppose the figure shows the market demand for Big Box e-readers. Suppose the price of the leading competitor\'s e-readers, a substitute good, decreases. Which of the following changes would occur? 0 a movement along D2 from point A to point B a movement along D2 from point B to point A a shift from DI to D2 D a shift from D2 to D1 Save

Solution

When the market price of leading competitor\'s e-readers i.e substitute decreases, then the market demand curve of Big box e-readers shifts leftward because now consumers demand more of substitute. Therefore, a shift from D1 to D2 would occur. Hence option (c) is correct.