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UI Post-UTME Economics 2021 (Model questions) Question 24

Question 24

Theory of Demand

Which of the following will shift the demand curve for Bournvita to the right?

  1. A.a rise in the price of Bournvita
  2. B.a tax on cocoa product
  3. C.a fall in price of Bournvita
  4. D.an increase in income
Show the answer and explanation

Answer: D (an increase in income)

Explanation

Higher income raises demand for a normal good like Bournvita, shifting the curve right; its own price only moves along the curve.