A demand curve will shift out for any of the following reasons except that:
A)preference for a good increases.
B)price of a substitute falls.
C)income rises.
D)price of a complement falls.

Question

Quizplus · Accepted Answer

A shift in the demand curve occurs due to changes in non-price factors. If the price of a substitute falls, it makes the substitute more attractive relative to the good in question, potentially decreasing demand for the original good rather than shifting its demand curve outwards. Increases in preferences, incomes, and a fall in the price of complements generally increase demand, shifting the demand curve outwards.

A Demand Curve Will Shift Out for Any of the Following