Scelta multipla
Which of the following would shift the demand curve for watches to the right?
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3. Supply and Demand
Shifting Demand
Scelta multipla
If consumers' incomes rise, the demand curve for a normal good will shift:
A
to the right
B
downward and become flatter
C
upward and become steeper
D
to the left
Guida verificata passo dopo passo1
Understand the definition of a normal good: a good for which demand increases as consumer income rises.
Recall that the demand curve shows the relationship between the price of a good and the quantity demanded, holding other factors constant.
When income increases, for a normal good, consumers are willing and able to buy more at every price level, which means the entire demand curve shifts.
A shift to the right of the demand curve indicates an increase in demand at all price points.
Therefore, the demand curve for a normal good shifts to the right when consumers' incomes rise.
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