Multiple Choice
Which of the following would NOT shift the demand curve for good A?
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3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
Multiple Choice
Which of the following would shift the demand curve for watches to the right?
A
A decrease in the population size
B
An increase in consumer income, assuming watches are a normal good
C
A decrease in the price of watches
D
A decrease in the price of substitute goods
Verified step by step guidance1
Understand that a demand curve shifts when there is a change in a non-price determinant of demand, such as income, tastes, prices of related goods, or population size.
Recall that a rightward shift in the demand curve means an increase in demand at every price level.
Analyze each option: a decrease in population size would reduce the number of buyers, shifting demand left, not right.
Consider the effect of an increase in consumer income on a normal good like watches; higher income increases demand, shifting the demand curve to the right.
Recognize that a decrease in the price of watches causes movement along the demand curve (change in quantity demanded), not a shift, and a decrease in the price of substitutes would typically decrease demand for watches, shifting demand left.
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