Multiple Choice
Which of the following would cause the demand curve to shift from point A to point B?
114
views
3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
Multiple Choice
Which of the following events could shift the demand curve for corn to the left?
A
A successful advertising campaign promoting the health benefits of corn
B
A decrease in consumer income, assuming corn is a normal good
C
A decrease in the price of corn
D
An increase in the price of wheat, a substitute for corn
Verified step by step guidance1
Understand that a leftward shift in the demand curve means a decrease in demand at every price level.
Recall that a decrease in consumer income typically shifts the demand curve for a normal good to the left, because consumers buy less of the good when they have less income.
Recognize that a successful advertising campaign promoting health benefits would increase demand, shifting the demand curve to the right, not left.
Note that a decrease in the price of corn causes a movement along the demand curve (change in quantity demanded), not a shift of the demand curve itself.
Understand that an increase in the price of wheat, a substitute for corn, would increase demand for corn, shifting its demand curve to the right, not left.
Related Videos
Related Practice
