Which of the following would cause the demand curve to shift from point A to point B?

• A. An increase in consumer income (for a normal good)
• B. A change in the quantity demanded due to a movement along the curve
• C. A decrease in the price of the good itself
• D. A reduction in production costs for suppliers

Answer: (A)

Verified step by step guidance

1. Understand the difference between a movement along the demand curve and a shift of the demand curve. A movement along the curve happens when the price of the good changes, affecting quantity demanded, while a shift means the entire demand curve moves due to factors other than the good's own price.
2. Identify what causes a shift in the demand curve. Common factors include changes in consumer income, tastes and preferences, prices of related goods, expectations, and the number of buyers.
3. Recognize that an increase in consumer income will increase demand for a normal good, causing the demand curve to shift to the right (from point A to point B), meaning consumers are willing to buy more at every price.
4. Eliminate options that describe movements along the curve rather than shifts. For example, a decrease in the price of the good itself causes movement along the demand curve, not a shift.
5. Understand that changes in production costs affect the supply curve, not the demand curve, so a reduction in production costs would not shift the demand curve.