Multiple Choice
Which of the following will NOT result in a leftward shift of the market demand curve for labor?
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3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
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Which of the following could have caused a rightward shift in the demand curve for a normal good?
A
A decrease in the price of a substitute good
B
An increase in consumer income
C
A decrease in the price of the good itself
D
A decrease in the population size
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 for a normal good, demand increases when consumer income increases, causing the demand curve to shift rightward.
Analyze the effect of a decrease in the price of a substitute good: this typically causes demand for the normal good to decrease, shifting its demand curve leftward, not rightward.
Consider a decrease in the price of the good itself: this causes movement along the demand curve (an increase in quantity demanded), not a shift of the demand curve.
Evaluate the effect of a decrease in population size: fewer consumers generally reduce demand, shifting the demand curve leftward.
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