ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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price of a substitute good, Product B, decreases
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huge population increase
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new government regulations
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consumers begin to like the product
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Detailed explanation-1: -A decrease in the price of an item the consumer considers a substitute will cause the demand curve to shift to the left.
Detailed explanation-2: -A product whose demand falls when income rises, and vice versa, is called an inferior good. In other words, when income increases, the demand curve shifts to the left.
Detailed explanation-3: -Changes in factors like average income and preferences can cause an entire demand curve to shift right or left. This causes a higher or lower quantity to be demanded at a given price.
Detailed explanation-4: -Answer and Explanation: An increase in the consumer’s income causes the demand for a normal good to increase (shift to the right) regardless of whether the good is a substitute or a complement.
Detailed explanation-5: -The supply curve can shift based on several factors including changes in production costs (e.g., raw materials and labor costs), technological progress, the level of competition and number of sellers/producers, and the regulatory & tax environment.