An increase in the quantity demanded could be caused by:
A) an increase in the price of substitute goods
B) a decrease in the price of complementary goods
C) an increase in consumer income levels
D) all of the above
E) none of the above

Question

Quizplus · Accepted Answer

All the options listed can lead to an increase in the quantity demanded. An increase in the price of substitute goods can make the original good more attractive, leading to higher demand. A decrease in the price of complementary goods can increase demand for the original good as the two are often used together. An increase in consumer income levels generally increases the purchasing power, allowing consumers to buy more, thus increasing demand.

An Increase in the Quantity Demanded Could Be Caused By