Multiple Choice
What happens in the market for beef jerky if customers expect a price increase in the future?
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3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
Multiple Choice
Which of the following shifts the demand for pizza to the right?
A
A decrease in the population of the city
B
A decrease in the price of pizza
C
An increase in the price of soda, a complement to pizza
D
An increase in consumer income, assuming pizza is a normal good
Verified step by step guidance1
Understand that a rightward shift in the demand curve means an increase in demand at every price level.
Recall that a change in the price of the good itself (pizza) causes a movement along the demand curve, not a shift of the demand curve.
Recognize that a decrease in the population of the city would reduce the number of buyers, shifting demand to the left, not right.
Know that an increase in the price of a complement (like soda) typically decreases the demand for the related good (pizza), shifting demand to the left.
Identify that an increase in consumer income increases demand for a normal good, shifting the demand curve for pizza to the right.
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