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Multiple Choice
Which of the following would result in the greatest rightward shift of the demand curve for good j?
A
A significant increase in consumer income, assuming good j is a normal good
B
A decrease in the price of good j
C
A decrease in consumer population
D
A decrease in the price of a substitute for good j
Verified step by step guidance
1
Understand that a rightward shift in the demand curve means an increase in demand at every price level.
Recall that for a normal good, an increase in consumer income leads to an increase in demand, shifting the demand curve to the right.
Recognize that a decrease in the price of good j itself causes a movement along the demand curve, not a shift of the curve.
Note that a decrease in consumer population reduces the number of buyers, which would shift the demand curve to the left, not right.
Understand that a decrease in the price of a substitute good makes the substitute more attractive, which typically decreases demand for good j, shifting its demand curve to the left.