You are analyzing the demand for good X. Which of the following will result in a shift to the right of the demand curve for X?
A) A decrease in the price of X
B) An increase in the price of a good that is a complement to good X
C) An increase in the price of a good that is a substitute for X
D) all of the above

Question

Quizplus · Accepted Answer

An increase in the price of a substitute good makes the original good more attractive to consumers, leading to an increase in demand for the original good, thus shifting its demand curve to the right. Decreases in the price of the good itself or increases in the price of a complement do not shift the demand curve; they move along it or affect demand for the complement, respectively.

You Are Analyzing the Demand for Good X