-Moving from demand curve D1 to demand curve D2 could be caused by a(n)
A) decrease in consumers' incomes.
B) increase in quantity supplied.
C) increase in the price of a close substitute.
D) increase in the price of a complement.
E) decrease in the size of the population.

Question

-Moving from demand curve D1 to demand curve D2 could be caused by a(n)
A) decrease in consumers' incomes. 
B) increase in quantity supplied. 
C) increase in the price of a close substitute. 
D) increase in the price of a complement. 
E) decrease in the size of the population.

Quizplus · Accepted Answer

An increase in the price of a close substitute would make the substitute less attractive, leading consumers to switch to the good in question, thus increasing its demand and shifting the demand curve from D1 to D2.

-Moving from Demand Curve D1 to Demand Curve D2 Could