Join thousands of students who trust us to help them ace their exams!Watch the first video
Multiple Choice
Which of the following would cause the demand curve to shift from point A to point B?
A
A change in the quantity supplied
B
An increase in consumer income (for a normal good)
C
A movement along the demand curve due to a price change
D
A decrease in the price of the good itself
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 demand curve occurs when the price of the good changes, causing a change in quantity demanded, but the demand curve itself does not move.
Recognize that a shift of the demand curve means the entire demand curve moves either to the right (increase in demand) or to the left (decrease in demand), which happens due to factors other than the good's own price.
Identify factors that cause the demand curve to shift, such as changes in consumer income, tastes and preferences, prices of related goods, expectations, and number of buyers.
Since the problem states the demand curve shifts from point A to point B, and the correct answer is an increase in consumer income for a normal good, understand that an increase in income increases demand, shifting the demand curve to the right.
Conclude that changes in quantity supplied or changes in the good's own price cause movements along the curve, not shifts, so they do not explain the shift from point A to point B.