1.3 Price determination in a competitive market

Figure 1 shows the market demand curve for blueberries.

Figure 1: Demand curve for blueberries under price and quantity changes

The fall in the price of blueberries and the resulting increase in the quantity demanded could have been caused by:

a decrease in the price of a substitute product, such as strawberries.

an increase in the cost of producing blueberry Greek yogurt.

a reduction in the price of a complementary good, such as Greek yogurt.

perfect weather conditions during the growing season leading to a bumper harvest.

1.3 Price determination in a competitive market Questions

Figure 1 shows the market demand curve for blueberries.

Figure 1: Demand curve for blueberries under price and quantity changes

The fall in the price of blueberries and the resulting increase in the quantity demanded could have been caused by:

a decrease in the price of a substitute product, such as strawberries.

an increase in the cost of producing blueberry Greek yogurt.

a reduction in the price of a complementary good, such as Greek yogurt.

perfect weather conditions during the growing season leading to a bumper harvest.