Arrange the following statements related to the change in demand for normal good.
(A) The consumer's income, increases.
(B) Given the prices of other goods and the preferences of the consumer,
(C) The demand curve shifts rightward.
(D) The demand for the normal good at given price changes.
Arrange the following statements related to the change in demand for normal good.
(A) The consumer's income, increases.
(B) Given the prices of other goods and the preferences of the consumer,
(C) The demand curve shifts rightward.
(D) The demand for the normal good at given price changes.
Solution
Option 1 -> Starts with income increase, but doesn't establish the conditions first.
Option 2 -> Places the graphical shift before explaining the demand change.
Option 3 -> Correctly sequences: conditions (B) → trigger (A) → effect (D) → graphical representation (C).
Option 4 -> Incorrectly starts with the graphical shift rather than the causal sequence.
Hence, Option 3: (B), (A), (D), (C) -> This is the correct logical sequence for explaining change in demand for a normal good. First, we establish the ceteris paribus conditions - "given the prices of other goods and preferences" (B). Then, the trigger event occurs - "consumer's income increases" (A). This leads to the direct consequence - "demand for the normal good at given price changes" (D). Finally, we represent this graphically - "the demand curve shifts rightward" (C). For normal goods, an increase in income always increases demand, causing a rightward shift in the demand curve. -> correct
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