If farmers stopped growing potatoes because it was too hard, this would cause the ..... curve for Lays Potato Chips to shift .....

DEMAND

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

If farmers stopped growing potatoes because it was too hard, this would cause the ____ curve for Lays Potato Chips to shift ____

A	demand ____ right
B	demand ____ left
C	supply ____ right
D	supply ____ left

Explanation:

Detailed explanation-1: -A fall in the price of potato chips would encourage buyers to demand more of it because of the positive income effect. Complementary goods are those goods that are consumed together. Hence, if the price of a complementary good falls; demand for the other complementary good increases.

Detailed explanation-2: -A decrease in the price of potatoes will result in a downward movement along the supply curve (i.e. a decrease in the quantity of potatoes supplied). An upward movement along a supply curve is called an increase in supply.

Detailed explanation-3: -Answer and Explanation: A change in the price of a good does not shift the demand curve.

Detailed explanation-4: -Answer and Explanation: The answer is C. A change in price of the good.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

DEMAND