Ceteris paribus,which of the following would generally cause an increase in the demand curve for new automobiles?

Question

Quizplus · Accepted Answer

An increase in consumers' income would generally cause an increase in the demand curve for new automobiles as consumers would have more purchasing power and may be more willing to buy higher-end models.

A decrease in the price of new automobiles (choice A) may result in an increase in the quantity demanded of new automobiles, but not necessarily an increase in the demand curve.

The perception of new models as ugly compared with old models (choice C) may actually decrease the demand curve for new automobiles, as consumers may be less willing to buy unappealing models.

Consumer expectations that the price of new automobiles will be lower next year (choice D) may also decrease the demand curve for new automobiles as consumers may choose to delay their purchase until the price is lower.

Ceteris Paribus,which of the Following Would Generally Cause an Increase