Chapter 1. eFigure 2.2
eFigure
Isoquants
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You must read each slide, and complete any questions on the slide, in sequence.
Question 1 of 3
Question 1.
The graph presents the changes in quantity demanded resulting from the outbreak of salmonella. Given what was illustrated at a price of $1, where quantity demanded dropped from 800 tomatoes to 300 tomatoes, which answer best captures what we would expect quantity demanded to be at a price of $2?
| A. |
| B. |
| C. |
| D. |
100
Correct! Before the salmonella outbreak, at a price of $2 consumers demanded 600 tomatoes. The outbreak will reduce the number of tomatoes demanded, allowing us to eliminate answers (c) and (d). While we know that fewer than 600 tomatoes will be demanded, we also know that fewer than 300 tomatoes will be demanded. This follows from the fact that 300 tomatoes are demanded at a price of $1, so fewer will be demanded at a price of $2.
Incorrect. Before the salmonella outbreak, at a price of $2 consumers demanded 600 tomatoes. The outbreak will reduce the number of tomatoes demanded, allowing us to eliminate answers (c) and (d). While we know that fewer than 600 tomatoes will be demanded, we also know that fewer than 300 tomatoes will be demanded. This follows from the fact that 300 tomatoes are demanded at a price of $1, so fewer will be demanded at a price of $2.