Asked by Jessica Slate on Jul 18, 2024
Verified
Which of the following will cause the demand curve for a normal good to shift to the right?
A) A decrease in income
B) An increase in the price of a complementary good
C) A decrease in the price of the good
D) An increase in the price of a substitute good
E) An expectation of a future price decline
Normal Good
A type of good for which demand increases as the income of individuals increases, reflecting a direct relationship between income and demand.
Demand Curve
A graph showing the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at various prices.
Future Price Decline
The expectation that the price of goods or services will decrease in the future, often influencing consumer and business decisions.
- Discern the influencers that instigate shifts in demand and supply curves.
Verified Answer
SR
Stephanie RubioJul 19, 2024
Final Answer :
D
Explanation :
An increase in the price of a substitute good makes the original good relatively cheaper and more attractive, leading to an increase in demand for the original good, thus shifting its demand curve to the right.
Learning Objectives
- Discern the influencers that instigate shifts in demand and supply curves.