Practice Questions
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Which of the following events would most likely cause a rightward shift in the demand curve for a normal good?
When people earn more money, they can afford more of the good. Other options are incorrect because A lower price for a substitute makes the substitute...
If the price of coffee decreases, how might this impact the demand for cream, a complementary good?
When coffee is cheaper, more people buy it. Other options are incorrect because Some think a lower coffee price means people spend less overall, so th...
If consumers experience an increase in income, leading to a rise in their purchasing power, which of the following scenarios best describes the impact on the demand curve for a normal good?
When people have more money, they can buy more of the good at every price. Other options are incorrect because Some think higher income means people b...
How does an increase in consumer income typically affect the demand curve for normal goods, and what is the underlying reason for this shift?
When people earn more, they can buy more of normal goods. Other options are incorrect because Some think more money means less buying power, but that ...
A new study shows that the price of a popular substitute good has significantly decreased. Considering the determinants of demand and the concept of elasticity, what is likely to happen to the demand curve for a related product?
When a substitute becomes cheaper, people switch to it. Other options are incorrect because Some think a cheaper substitute makes the related product ...
A sudden increase in consumer income leads to a shift in the demand curve for luxury cars. Which of the following best explains this change?
When people earn more, they have extra money to spend. Other options are incorrect because A lower price would only make people buy more cars along th...
When consumer preferences shift in favor of a product, this results in a(n) __________ of the demand curve for that product.
A shift to the right means that at every price, people want to buy more of the product. Other options are incorrect because The idea that preferences ...
A popular coffee shop notices that during a local festival, more people are buying their specialty coffee, even though the price remains unchanged. Which of the following best explains the shift in demand for their coffee during this event?
When a festival happens, people feel more excited and want to try local treats. Other options are incorrect because Some think that if other drinks be...
Increase in consumer income : outward shift in demand curve :: decrease in consumer preferences : ?
When people like a product less, they buy less at each price. Other options are incorrect because An outward shift means more demand; No shift means d...
Which of the following factors can cause a shift in the demand curve for a product? Select all that apply.
When people earn more money, they can buy more of a normal good, so the whole demand curve moves to the right. Other options are incorrect because Low...
If a popular new diet trend causes consumers to prefer organic foods over non-organic foods, what is the likely effect on the demand curve for organic foods?
When a trend makes people like organic foods more, more people want to buy them at every price. Other options are incorrect because Some think a new t...
Which of the following factors would cause a rightward shift in the demand curve for a luxury car?
When people earn more money, they can afford pricier items. Other options are incorrect because Lower fuel costs make driving cheaper, but that only c...
Arrange the following factors that can shift the demand curve in the correct order of their impact on consumer demand: A) Change in consumer preferences, B) Change in income, C) Change in prices of related goods, D) Change in population size.
Income changes give people more or less money to spend, so they can buy more or less of everything. Other options are incorrect because This answer pu...
A new health report reveals that a particular fruit is highly beneficial for heart health. How would this information likely affect the demand for that fruit? Classify the change in demand based on the factors that could shift the demand curve.
The report tells people the fruit is good for heart health. Other options are incorrect because The idea that a price rise makes demand drop is about ...
Master Shifts in Demand Curve
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