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2 October, 18:20

Which of the following would cause the demand curve for ice cream to shift to the right?

a. A reduction in the cost of producing ice cream.

b. A rise in the price of popsicles, a substitute for ice cream.

c. A reduction in the price of ice cream.

d. An unexpected cold and rainy summer season.

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Answers (1)
  1. 2 October, 19:50
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    b. A rise in the price of popsicles, a substitute for ice cream.

    Explanation:

    A shift in the demand curve to the right indicates an increase in demand.

    If the price of a subsituite increases, demand increases.

    An unexpected cold reduces demand and shifts the demand curve to the left.

    Changes in price leads to movement along the demand curve.

    A reduction in cost of production affects the supply curve.
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