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Figure 5.8 Preference Changes and Shifts in the Demand Curve
(a) Caroline’s indifference curves for grape juice flatten when her preference for grape juice decreases relative to her preference for Mountain Dew. At each price level, she now consumes fewer bottles of grape juice.(b) Because she purchases fewer bottles of grape juice at each price point, Caroline’s demand curve for grape juice shifts inward from D1 to D2.