3. The Market Forces of Supply and Demand
Using the Supply and Demand Curves to Find Equilibrium
Struggling with Microeconomics?
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A change in which of the following will NOT shift the demand curve for ice cream?
A
The price of frozen yogurt
B
The price of ice cream
C
The price of ice cream cones
D
The income of ice cream consumers
Verified step by step guidance1
Understand the concept of a demand curve: The demand curve represents the relationship between the price of a good and the quantity demanded by consumers. It typically slopes downward, indicating that as the price decreases, the quantity demanded increases.
Identify factors that shift the demand curve: Factors that can shift the demand curve include changes in consumer income, prices of related goods (substitutes or complements), consumer preferences, and expectations about future prices.
Analyze the effect of the price of frozen yogurt: Frozen yogurt is a substitute for ice cream. A change in the price of frozen yogurt can affect the demand for ice cream, potentially shifting the demand curve.
Consider the price of ice cream cones: Ice cream cones are complements to ice cream. A change in the price of ice cream cones can affect the demand for ice cream, potentially shifting the demand curve.
Evaluate the impact of the price of ice cream: The price of ice cream itself does not shift the demand curve; instead, it causes movement along the demand curve. Changes in the price of ice cream affect the quantity demanded, not the position of the demand curve.
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