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:
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:
Solution
Option 1 -> Incorrect because (D) causes movement along the demand curve, not a shift.
Option 2 -> (A) Increase in income shifts demand right for normal goods. (B) Decrease in complementary goods' price increases demand for the main good. (C) Increase in substitute goods' price makes consumers switch to the main good, shifting demand right. (D) is excluded as it causes movement along the curve, not a shift.
Option 3 -> Incorrect because (D) represents a change in the good's own price, which causes movement along the demand curve, not a rightward shift.
Option 4 -> Incorrect because it excludes (A), which is a valid factor that shifts demand right, and includes (D), which only causes movement along the curve.
Hence, Option 2: (A), (B) and (C) only -> A rightward shift in the demand curve occurs when non-price determinants change. (A) Higher income for normal goods increases purchasing power. (B) Cheaper complementary goods make the main product more attractive (e.g., cheaper printers increase demand for ink). (C) Expensive substitutes drive consumers toward the main product (e.g., expensive tea increases coffee demand). (D) is excluded because a change in the good's own price causes movement along the existing demand curve, not a shift of the entire curve. -> correct
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