In microeconomics, what can cause an entire demand curve for a good to shift (rather than a movement along the curve)?

• A. A change in consumers' income (for a normal good), holding the good's own price constant
• B. A change in the good's supply curve, with demand determinants unchanged
• C. A change in quantity demanded caused by moving to a different point on the same demand curve
• D. A change in the good's own price, holding all other determinants of demand constant

Answer: (A)

Verified step by step guidance

1. Understand that a demand curve shows the relationship between the price of a good and the quantity demanded, holding all other factors constant.
2. Recognize that a movement along the demand curve occurs when the price of the good changes, causing a change in quantity demanded but not shifting the curve itself.
3. Identify that a shift of the entire demand curve happens when a non-price determinant of demand changes, such as consumer income, tastes, prices of related goods, expectations, or number of buyers.
4. Focus on the specific example of a change in consumers' income for a normal good: an increase in income typically increases demand at every price, shifting the demand curve to the right, while a decrease shifts it to the left.
5. Note that changes in the supply curve or changes in the good's own price do not shift the demand curve; supply changes affect supply, and price changes cause movements along the demand curve.