In the market for bags of potato chips, which of the following would cause the demand curve to shift to the right?

• A. A decrease in population in the market area
• B. A decrease in the price of a substitute good, such as pretzels
• C. An increase in consumer income, assuming potato chips are a normal good
• D. A decrease in the price of potato chips

Answer: (C)

Verified step by step guidance

1. Understand that a demand curve shifts to the right when, at every price, consumers want to buy more of the good than before.
2. Recall that a decrease in population typically reduces the number of buyers, which would shift demand to the left, not right.
3. Recognize that a decrease in the price of a substitute good (like pretzels) makes the substitute more attractive, causing demand for potato chips to decrease, shifting the demand curve to the left.
4. Know that an increase in consumer income increases demand for normal goods, shifting the demand curve to the right because consumers can now afford to buy more at each price.
5. Remember that a decrease in the price of potato chips causes a movement along the demand curve (change in quantity demanded), not a shift of the demand curve itself.