Answer to Question #182808 in Microeconomics for Lucy

Question

Which one of the following may result in a decrease in the demand for frozen vegetables?

A rise in consumers’ incomes.

An increase in the price of frozen vegetables.

A decrease in the price of freezers.

A decrease in the price of fresh vegetables.

A decrease in the price of frozen vegetables.

Answer 1

The correct answer is A decrease in the price of fresh vegetables.

Explanation.

If the price of fresh vegetables is lowered, people would demand more of them. They would then demand less frozen vegetables, preferring to purchase more fresh vegetables at a lower cost.