Demand for a product is most likely to increase because:

• A. The price of the product increases.
• B. Consumers' incomes rise, assuming the product is a normal good.
• C. Consumers expect future prices to fall.
• D. The price of a substitute good decreases.

Answer: (B)

Verified step by step guidance

1. Understand the concept of demand: Demand refers to the quantity of a product that consumers are willing and able to purchase at various prices during a given period.
2. Recall the law of demand: Generally, when the price of a product increases, the quantity demanded decreases, and vice versa, holding other factors constant.
3. Identify factors that shift the demand curve (change demand), not just movement along the curve: These include changes in consumer income, prices of related goods (substitutes and complements), consumer expectations, tastes, and population.
4. Analyze the effect of an increase in consumers' incomes on demand for a normal good: For normal goods, an increase in income leads to an increase in demand, shifting the demand curve to the right.
5. Evaluate other options: Expecting future prices to fall usually decreases current demand; a decrease in the price of a substitute good typically decreases demand for the product; an increase in the product's own price causes a movement along the demand curve, not an increase in demand.