Which of the following can shift the demand curve to the right?
(A) Increase in the income of the consumer (For normal goods).
(B) Decrease in the price of complementary goods.
(C) Increase in the price of substitute goods.
(D) Increase in the price of goods.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
A rightward shift in the demand curve means an increase in demand at the same price.
-
(A) Increase in the income of the consumer (for normal goods) → Yes, this increases demand for normal goods.
-
(B) Decrease in the price of complementary goods → Yes, this makes the combination cheaper, increasing demand.
-
(C) Increase in the price of substitute goods → Yes, people will shift to the relatively cheaper good, increasing its demand.
-
(D) Increase in the price of goods → No, this does not shift the demand curve. It causes a movement along the curve, not a shift.