The Following Questions Refer to the graph below.
-Which of the following will cause a change in the demand for beer?
A)A change in the average income in the economy
B)A change in the price of hops (used to make beer)
C)A change in the price of beer
D)All of the above
E)None of the above

Question

The Following Questions Refer to the graph below. 
-Which of the following will cause a change in the demand for beer?
A)A change in the average income in the economy 
B)A change in the price of hops (used to make beer) 
C)A change in the price of beer 
D)All of the above 
E)None of the above

Quizplus · Accepted Answer

A change in the average income in the economy can impact the demand for beer since beer is considered a normal good. If there is an increase in average income, people may be willing to purchase more beer, and if there is a decrease in average income, people may be willing to purchase less beer. Changes in the price of hops (B) will impact the cost of producing beer but not necessarily the demand for beer. Changes in the price of beer (C) will impact the quantity demanded of beer but not necessarily the demand for beer.

The Following Questions Refer to the Graph Below