Answer to Question #316397 in Microeconomics for Yamin

Question

"As the price of domestic automobiles has inched upward, customers have found foreign autos to

be a better bargain. Consequently, domestic auto sales have been decreasing, and foreign auto sales

have been increasing." Using only the information in this quotation and assuming everything else

constant, which of the following best describes this statement?

(A) A shift in the demand curves for both domestic and foreign automobiles

(B) A movement along the demand curves for both foreign and domestic automobiles

(C) A movement along the demand curve for domestic autos, and a shift in the demand curve for

toreign autos

(D) A shift in the demand curve for domestic autos, and a movement along the demand curve for

foreign autos

Answer 1

B.A movement along the demand curves for both foreign and domestic automobiles