What is that Campbell's Pork and
Beans can doing on the display for VanCamp's Pork and Beans
(see below)?
After studying this lesson you will
be able to draw a graph illustrating what happened to
the demand for Campbell's Pork and Beans when a customer
took a can out of their shopping cart and placed it on this
display of VanCamp's Pork and Beans that were on
sale.
What happend to the demand for
Campbell's and which non-price determinant of demand
explains why that Campbell's soup can is there?
ANSWER: The demand for Campbell's
decreased because the price of a substitute good, VanCamp's,
decreased. There has been no change in the demand for
VanCamp's.
|
