Exhibit 3-2 Demand curves

-In Exhibit 3-2,which of the following could not have caused the shift in the demand curve from D1 to D2?

Question

Exhibit 3-2 Demand curves
 
-In Exhibit 3-2,which of the following could not have caused the shift in the demand curve from D1 to D2?

Quizplus · Accepted Answer

A decrease in the number of consumers would result in a shift of the entire demand curve to the left, but it would not cause a shift from D1 to D2. The other options could potentially cause a shift in the demand curve from D1 to D2. An increase in expected future prices would cause consumers to buy more now, shifting the demand curve to the right from D1 to D2. An increase in the price of a substitute would make the good relatively cheaper, causing consumers to buy less of the substitute and more of the good, shifting the demand curve to the right from D1 to D2. A decrease in the price of a complement would increase the demand for the good that the complement is used with, shifting the demand curve to the right from D1 to D2. An increase in income would cause consumers to have more disposable income, allowing them to buy more of the good, shifting the demand curve to the right from D1 to D2.

Exhibit 3-2 Demand Curves