Question

The price of orange juice falls from $2.49 a jug to $1.99 a jug. (1) Explain whether the demand curve for apple juice will shift left, shift right, or if there is only movement along the demand curve for apple juice.

Answer 1

Answer:

there is only movement along the demand curve for apple juice.

Explanation:

The demand curve shows the graphical relationship between the price of a good or service and the quantity demanded at each point in time. It shows the quantity demanded at each price. There is an inverse relationship between price and quantity demanded,  as the price increases the quantity demanded reduces (but demand itself stays the same) while If the price decreases, quantity demanded increases.

The price of orange juice falls from $2.49 a jug to $1.99 a jug, the demand curve remains the same, but there is only movement along the demand curve for apple juice.