Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
An increase in consumer income
B
A decrease in the price of a substitute good
C
A decrease in consumer preferences for the good
D
An increase in the price of the good
Understanding the Answer
Let's break down why this is correct
Answer
A rightward shift of the demand curve for a normal good most likely occurs when consumers’ income rises, because higher income lets more people afford the good. When income goes up, each person buys more of the good, so the quantity demanded increases at every price. This raises the entire demand curve to the right. For example, if the average household income grows, people will buy more coffee, shifting coffee’s demand curve outward.
Detailed Explanation
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 cheaper, so people switch away from the original good; If people like the good less, they buy it less.
Key Concepts
law of demand
Topic
Shifts in Demand Curve
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1If 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?
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2
Question 2How does an increase in consumer income typically affect the demand curve for normal goods, and what is the underlying reason for this shift?
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3
Question 3Which of the following scenarios would most likely cause a rightward shift in the supply curve for smartphones?
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4
Question 4Which of the following factors can cause a shift in the demand curve for a product? Select all that apply.
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5
Question 5Which of the following factors would cause a rightward shift in the demand curve for a luxury car?
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6
Question 6Arrange 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.
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7
Question 7Which of the following factors can cause a shift in the supply curve for a product? Select all that apply.
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8
Question 8Arrange the following factors that can cause a rightward shift in the supply curve in the correct order: A) Decrease in production costs, B) Introduction of new technology, C) Government subsidies, D) Increase in producer expectations.
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9
Question 9Which of the following factors would likely cause a rightward shift in the supply curve for smartphones?
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