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Multiple Choice
Which of the following changes would cause a shift in the demand curve for a good (rather than a movement along the curve)?
A
A change in the quantity demanded due to a change in the good's price
B
A change in consumer income, holding the good's price constant
C
A movement from one point to another on the same demand curve caused by a change in the good's price
D
A change 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, affecting the quantity demanded, while all other factors remain constant.
Recognize that a shift in the demand curve happens when a non-price determinant of demand changes. These determinants include consumer income, tastes and preferences, prices of related goods, expectations, and the number of buyers.
Analyze each option: changes in the good's own price cause movements along the demand curve, not shifts. Therefore, options mentioning changes in the good's price correspond to movements along the curve.
Identify that a change in consumer income, holding the good's price constant, affects consumers' purchasing power and preferences, leading to a shift in the demand curve either to the right (increase in demand) or to the left (decrease in demand).
Conclude that the correct choice is the one involving a change in consumer income, as it is a non-price factor that shifts the entire demand curve rather than causing movement along it.