In the market for Apple iPhones, which of the following would most likely cause the demand curve to shift to the right?

• A. An increase in consumer incomes, assuming iPhones are a normal good
• B. A decrease in the population of potential buyers
• C. An increase in the price of iPhones
• D. A decrease in the price of Android smartphones

Answer: (A)

Verified step by step guidance

1. Understand that a demand curve shifts to the right when there is an increase in demand at every price level, meaning consumers want to buy more of the good regardless of its price.
2. Recall that for a normal good, an increase in consumer incomes leads to an increase in demand because people can afford to buy more, shifting the demand curve to the right.
3. Recognize that a decrease in the population of potential buyers would reduce demand, shifting the demand curve to the left, not to the right.
4. Note that an increase in the price of iPhones causes a movement along the demand curve (a decrease in quantity demanded), not a shift of the demand curve itself.
5. Understand that a decrease in the price of substitute goods (like Android smartphones) would cause some consumers to switch to the substitute, decreasing demand for iPhones and shifting the demand curve to the left.