Multiple Choice
Which of the following best describes a reason the demand curve for a good can shift (i.e., consumer demand changes)?
8
views
3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
Multiple Choice
Which of the following is most likely to cause an entire demand curve for a good to shift (rather than a movement along the demand curve)?
A
A change in the quantity supplied of the good
B
A change in the price of the good itself
C
A movement from one point to another on the same demand curve due to a change in quantity demanded
D
A change in consumers' incomes (assuming the good is normal)
Verified step by step guidance1
Understand the difference between a movement along the demand curve and a shift of the demand curve. A movement along the demand curve happens when the price of the good itself changes, affecting the quantity demanded.
Recognize that a shift of the demand curve occurs when a non-price determinant of demand changes. These determinants include factors like consumer income, tastes and preferences, prices of related goods, expectations, and the number of buyers.
Analyze each option: A change in the quantity supplied affects supply, not demand, so it does not shift the demand curve.
A change in the price of the good causes a movement along the demand curve, not a shift.
A change in consumers' incomes (assuming the good is normal) changes consumers' purchasing power, which shifts the entire demand curve either to the right (increase in income) or to the left (decrease in income).
Related Videos
Related Practice
