A change in any of the ceteris paribus conditions for demand leads to a
A) a good going from an inferior good to a normal good.
B) movement along the demand curve.
C) shift of the demand curve.
D) change in supply.

Question

Quizplus · Accepted Answer

A change in any of the ceteris paribus conditions for demand, such as income, prices of related goods, tastes and preferences, expectations, and number of buyers, causes the entire demand curve to shift to the left or right. This is because the quantity demanded at each price point changes as a result of the change in the respective condition. Therefore, it leads to a shift of the demand curve, and not a movement along the curve. It is also not related to the classification of a good as inferior or normal, or to changes in supply.

A Change in Any of the Ceteris Paribus Conditions for Demand