Multiple Choice
Which of the following is a determinant of demand (i.e., a factor that shifts the demand curve) for a normal good?
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3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
Multiple Choice
Which of the following can cause a shift in a market demand curve for a good (i.e., change demand at every price) rather than a movement along the demand curve?
A
A change in the quantity supplied of the good due to a change in production technology
B
A change in the good's price caused by a temporary shortage, holding tastes and income constant
C
A change in the price of the good itself
D
A change in consumers' tastes or preferences for the good
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 occurs when the price of the good changes, affecting the quantity demanded, while all other factors remain constant.
Recognize that a shift in the demand curve means that at every price, the quantity demanded changes. This happens due to changes in factors other than the good's own price, such as consumer income, tastes, prices of related goods, or expectations.
Analyze each option: A change in quantity supplied due to production technology affects supply, not demand, so it does not shift the demand curve.
A change in the good's price caused by a temporary shortage results in a movement along the demand curve, not a shift, because the price itself is changing.
A change in consumers' tastes or preferences affects their willingness to buy the good at every price, causing the entire demand curve to shift either rightward (increase in demand) or leftward (decrease in demand).
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