Demand for a product is most likely to increase because:

• A. Consumers' incomes rise, assuming the product is a normal good.
• B. The price of a substitute good decreases.
• C. Consumers expect future prices to fall.
• D. The price of the product increases.

Answer: (A)

Verified step by step guidance

1. Understand the concept of demand and the factors that cause it to shift. Demand increases when consumers are willing and able to buy more of a product at every price level.
2. Recall that for a normal good, an increase in consumers' incomes leads to an increase in demand because people can afford to buy more of the product.
3. Analyze the effect of the price of substitute goods: if the price of a substitute decreases, consumers may switch to the substitute, causing the demand for the original product to decrease, not increase.
4. Consider consumer expectations: if consumers expect future prices to fall, they may delay purchases, leading to a decrease in current demand.
5. Recognize that an increase in the product's own price typically causes a movement along the demand curve (a decrease in quantity demanded), not an increase in demand.