Ice Cream Demand Curve Shift

What would cause the demand curve for ice cream to shift to the right?

a. A reduction in the cost of producing ice cream.

b. A rise in the price of popsicles, a substitute for ice cream.

c. A reduction in the price of ice cream.

d. An unexpected cold and rainy summer season.

Answer:

b. A rise in the price of popsicles, a substitute for ice cream.

When the demand curve for ice cream shifts to the right, it means that there is an increase in demand for ice cream. This can be caused by various factors, one of which is a rise in the price of popsicles, which are a substitute for ice cream.

When the price of a substitute for ice cream, such as popsicles, increases, consumers are more likely to choose ice cream instead, leading to an increase in the demand for ice cream.

On the other hand, a reduction in the price of ice cream itself would typically lead to an increase in quantity demanded but not necessarily a shift in the demand curve.

An unexpected cold and rainy summer season may actually reduce the demand for ice cream as consumers may prefer warmer weather treats or stay indoors. This would cause the demand curve to shift to the left, indicating a decrease in demand.

It's important to note that changes in price lead to movement along the demand curve, while factors like the cost of production affect the supply curve rather than the demand curve.