Asked by Noelle Buban on May 04, 2024
Verified
Which factor will NOT cause an increase in demand for good X?
A) a decrease in income if good X is an inferior good
B) an increase in income if good X is a normal good
C) a decrease in the price of good X
D) an increase in the popularity of good X with consumers
Increase in Demand
A situation where there is a rise in the quantity of a product or service that consumers are willing and able to purchase at existing prices.
Inferior Good
A type of good whose demand decreases as the income of the consumer increases, opposite to what happens with normal goods.
Normal Good
A type of good for which demand increases as the income of the consumer increases.
- Familiarize oneself with the differences among normal goods, inferior goods, substitutes, and complementary goods.
- Evaluate the contribution of external factors to the fluctuations in goods' supply and demand.
Verified Answer
SN
Sogol NoroozijamaliMay 11, 2024
Final Answer :
C
Explanation :
A decrease in the price of good X would lead to an increase in demand for good X due to the law of demand. However, a decrease in income if good X is an inferior good, an increase in income if good X is a normal good, and an increase in the popularity of good X with consumers would all lead to an increase in demand for good X.
Learning Objectives
- Familiarize oneself with the differences among normal goods, inferior goods, substitutes, and complementary goods.
- Evaluate the contribution of external factors to the fluctuations in goods' supply and demand.