Question:
All of the following cause a rightward shift in the market demand curve for a normal good except
(1) an increase in the price of the substitute product.
(2) an increase in consumers’ income.
(3) a decrease in the price of a complementary product.
(4) a decrease in the price of the good itself.
(5) an increase in the number of consumers in the market.
Correct Answer:
(4)
Answer Explanation:
Options 1, 2, 3, and 5 are non-price determinants that will increase demand, shifting the curve to the right. Option 4 (a decrease in the good’s own price) causes a downward movement along the existing demand curve (an increase in quantity demanded), not a shift.
Topic: Demand Theory Year: 2024
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