Which of the following would shift the demand curve for watches to the right?

• A. A decrease in the population size
• B. An increase in consumer income, assuming watches are a normal good
• C. A decrease in the price of watches
• D. A decrease in the price of substitute goods

Answer: (B)

Verified step by step guidance

1. Understand that a demand curve shifts when there is a change in a non-price determinant of demand, such as income, tastes, prices of related goods, or population size.
2. Recall that a rightward shift in the demand curve means an increase in demand at every price level.
3. Analyze each option: a decrease in population size would reduce the number of buyers, shifting demand left, not right.
4. Consider the effect of an increase in consumer income on a normal good like watches; higher income increases demand, shifting the demand curve to the right.
5. Recognize that a decrease in the price of watches causes movement along the demand curve (change in quantity demanded), not a shift, and a decrease in the price of substitutes would typically decrease demand for watches, shifting demand left.