Which of the following will cause the demand curve for Beatles' compact discs to shift to the right?
A) An increase in the price of the discs
B) A decrease in consumers' incomes
C) An increase in the price of Phil Collins' latest compact disc (a substitute)
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

An increase in the price of a substitute (Phil Collins' compact disc) will cause consumers to switch to the Beatles' discs, increasing the demand for it. Option A is incorrect as an increase in price will generally decrease the demand. Option B is incorrect as a decrease in income will typically decrease the demand for most normal goods, including music CDs.

Which of the Following Will Cause the Demand Curve for Beatles