Which of the following factors is most likely to cause a shift in the demand curve for a good?

• A. A change in the supply of the good
• B. A change in the production technology
• C. A change in consumer income
• D. A change in the price of the good itself

Answer: (C)

Verified step by step guidance

1. Understand the difference between a movement along the demand curve and a shift of the demand curve. A movement along the demand curve happens when the price of the good itself changes, while a shift occurs when other factors change.
2. Identify factors that cause a shift in demand. These include changes in consumer income, tastes and preferences, prices of related goods (substitutes or complements), expectations about future prices, and the number of buyers.
3. Recognize that a change in the supply of the good or a change in production technology affects the supply curve, not the demand curve, so these do not cause a demand curve shift.
4. Note that a change in the price of the good itself causes a movement along the demand curve, not a shift of the curve.
5. Conclude that a change in consumer income is a classic example of a factor that shifts the demand curve, because it changes consumers' purchasing power and willingness to buy at every price.