Refer to the above diagram,in which S₁ and D₁ represent the original supply and demand curves and S₂ and D₂ the new curves.In this market the indicated shift in demand may have been caused by:

Question

Quizplus · Accepted Answer

An increase in incomes if the product is a normal good would cause a rightward shift in the demand curve, leading to an increase in both equilibrium price and quantity. A decline in the number of buyers in the market (A) would cause a leftward shift in the demand curve. A decline in the price of a substitute good (B) would also cause a leftward shift in the demand curve for the original good. An increase in incomes for an inferior good (D) would cause a leftward shift in the demand curve.

Refer to the Above Diagram,in Which S1 and D1 Represent

Refer to the Above Diagram,in Which S₁ and D₁ Represent