Answer to Question #113799 in Economics of Enterprise for ayusha habib

Question

Because of health awareness many people reduce their consumption of animal oil and increase their consumption of vegetable oil to reduce cholesterol problems. What will happen to demand curve of both products?

Answer 1

A determinant of demand sometimes changes making demand curve to shift. When the demand for animal oil falls this will make the demand curve to shift to the left, because of the drop in consumption. On the other hand the demand curve of the vegetable oil will shift to the right as a result of the increase in demand and consumption