Which of the following factors will shift the demand curve to the left?
A)An increase in the price of a substitute product.
B)A decrease in the price of a complementary product.
C)An increase in income if the product is an inferior product.
D)The expectation that future prices of the product will be higher.

Question

Quizplus · Accepted Answer

An increase in income leads to a decrease in demand for inferior goods because as people's income increases, they tend to buy more of normal or luxury goods instead of inferior goods. This is why the demand curve for an inferior product shifts to the left with an increase in income.

Which of the Following Factors Will Shift the Demand Curve