Question 6
Theory of DemandWhen the demand curve shifts to the right, it indicates that a larger quantity is demanded at each price. This is caused by one of the following:
- A.a fall in income
- B.a rise in the price of a complement
- C.a fall in the price of a substitute
- D.a change in tastes against this commodity
- E.none of the above.
Show the answer and explanation
Answer: E (none of the above.)
Explanation
Each of A to D would reduce demand (shift it to the left) for a normal good, so none of them causes a rightward shift.