(Figure: Demand Shift) Which of the following factors would cause the change in the figure? Figure: Demand Shift I. an increase in the price of a complement good II. an increase in production costs III. an increase in the price of a substitute good IV. an increase in income for an inferior good
A) I and III only
B) II and IV only
C) III only
D) I, II, and III

Question

(Figure: Demand Shift) Which of the following factors would cause the change in the figure? Figure: Demand Shift  I. an increase in the price of a complement good II. an increase in production costs III. an increase in the price of a substitute good IV. an increase in income for an inferior good
A) I and III only 
B) II and IV only 
C) III only 
D) I, II, and III

Quizplus · Accepted Answer

The only factor that would cause a change in demand is an increase in the price of a substitute good, since this would cause consumers to shift their purchasing towards the original good. The other factors listed would affect supply or the quantity demanded, but not demand itself.

(Figure: Demand Shift) Which of the Following Factors Would Cause