Multiple Choice
Which of the following illustrates a change in quantity demanded?
3. The Market Forces of Supply and Demand
Shifts in the Demand Curve
Multiple Choice
Which of the following would NOT shift the demand curve for good A?
A
A change in the price of good A
B
A change in consumer tastes and preferences
C
A change in consumer income
D
A change in the price of a substitute good
Verified step by step guidance1
Understand that the demand curve shows the relationship between the price of good A and the quantity demanded, holding all other factors constant.
Recognize that a change in the price of good A itself causes a movement along the demand curve, not a shift of the demand curve.
Identify factors that shift the demand curve, such as changes in consumer tastes and preferences, which affect demand at every price level.
Consider how a change in consumer income shifts the demand curve because it changes consumers' purchasing power and willingness to buy good A.
Note that a change in the price of a substitute good affects the demand for good A, shifting its demand curve as consumers switch between goods.
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