Which of the following would not cause an increase in the demand for cheese?
A)a decrease in the price of crackers, which are consumed with cheese
B)an increase in the income of cheese consumers, assuming that cheese is a normal good
C)an increase in the population
D)a technological advance that makes it cheaper to produce cheese

Question

Which of the following would not cause an increase in the demand for cheese?
A)​a decrease in the price of crackers, which are consumed with cheese
B)​an increase in the income of cheese consumers, assuming that cheese is a normal good
C)​an increase in the population
D)​a technological advance that makes it cheaper to produce cheese

Quizplus · Accepted Answer

Option D would result in a decrease in the cost of producing cheese, which would lead to a decrease in the price of cheese. Since other things being constant, demand decreases as price decreases, the demand for cheese would not increase with a decrease in its price. The other options would either increase the number of people willing to buy cheese (option C), increase consumers' purchasing power (option B), or increase the complementarity between cheese and crackers (option A), thus causing an increase in the demand for cheese.

Which of the Following Would Not Cause an Increase in the Demand