Multiple Choice
Which of the following factors is most likely to increase the demand for a good or service?
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3. The Market Forces of Supply and Demand
The Demand Curve
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Which of the following will NOT cause the demand for product k to change?
A
A change in consumer income
B
A change in the price of product k
C
A change in the price of a substitute good
D
A change in consumer tastes and preferences
Verified step by step guidance1
Understand the difference between a change in demand and a change in quantity demanded. A change in demand means the entire demand curve shifts, while a change in quantity demanded means movement along the same demand curve due to a price change of the product itself.
Identify factors that cause a shift in the demand curve for product k. These typically include changes in consumer income, prices of related goods (substitutes or complements), and consumer tastes and preferences.
Recognize that a change in the price of product k does NOT shift the demand curve but causes a movement along the demand curve, which is called a change in quantity demanded.
Review each option: a change in consumer income shifts demand; a change in the price of a substitute good shifts demand; a change in tastes and preferences shifts demand; but a change in the price of product k only changes quantity demanded, not demand itself.
Conclude that the correct answer is the factor that does NOT cause the demand curve to shift, which is a change in the price of product k.
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