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Other economic factors, known as determinants of demand, can affect the demand of a good or service by shifting the demand cu
Peaches and cream are compliments in consumption. If the price of cream increases, the impact on the market demand for peache
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Answer #1

1. If the price of cream increases, quantity demanded for creams will decrease (law of demand : there is an inverse relationship between price and Quantity demanded). As cream and peaches are consumed together (complementary goods), therefore demand for peaches will also decrease, shifting the demand curve in peach market leftward.

Answer: Figure (b)

2. If animal rights activists decreases Consumers' willingness to purchase leather products, therefore demand for leather jackets will decrease. This will shift the demand curve in leather jacket market leftward.

Answer: Figure (b)

3. If the expected future price of oil decreases, then Consumers will purchase more in the future and less in today's period. This will shift the current demand for oil curve leftward.

Answer: Figure (b)

4. In case of normal good, demand decreases as income decreases. Therefore, if income decreases, demand for steak will decrease, shifting the demand curve leftward.

Answer: figure (b)

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