What's the correct answer? It's a little vague and I don't have enough experience to know what assumptions to make.?
Bad weather destroyed half of the blueberry crop. Consumers are responding to an increase in the price of blueberries by buying more strawberries. This change is expected to increase the price and quantity of strawberries sold. In terms of basic supply and demand analysis, there has been a:
A. Shift in the demand curve for both blueberries and strawberries.
B. Movement along the demand curve for both blueberries and strawberries.
C. Shift in the demand curve for blueberries and movement along the demand curve for strawberries.
D. Movement along the demand curve for blueberries and shift in the demand curve for strawberries.
Specifically, I'm not sure if I should assume:
"Movement along the demand curve" refers to movement of the equilibrium along the demand curve.
All other things equal, or that I don't consider factors other than price, such as the fact that an increase of the price of blueberries will increase the demand of strawberries.
Any help is appreciated. Thanks!
Without a proper and specific definition of the "shift" and "movement" terms, I have to guess.
I would say that since supply was affected for blueberries but not for strawberries, C is more likely (using common definitions for shift and movement).
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