A demand curve will shift out for any of the following reasons except
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 the demand for the original good rather than increasing it, which would not cause the demand curve for the original good to shift out (to the right). Increases in preference, income, and a decrease in the price of complements all lead to an outward shift in the demand curve by increasing the quantity demanded at each price level.

A Demand Curve Will Shift Out for Any of the Following