Question

The demand for meals at a local Applebee's will shift to the left if: Select one: a. the price of a meal at Applebee's rises. b. the Olive Garden offers a 10 percent discount coupon in the local newspaper. c. the price of gasoline falls in the area. d. local incomes increase and Applebee's is a normal good.

Answer 1

B.

Step-by-step explanation:

It is not option A because changes in price will not shift demand, those changes will lead to movements along the demand curve. It is not option C because gasoline prices are not directly correlated with demand for meals, maybe it could affect supply. It is not option D because an increase in income, if Applebee´s are normal goods, will lead to an increase in demand (shift to the right of the demand curve). It is option B because if Olive Garden offers a 10% discount, people will choose to go there instead of Applebee´s, then demand will decrease, and this will lead to a shift of the demand curve to the left.