Which of the following will not increase the demand for iced tea?
A)an increase in advertising that makes drinking iced tea more appealing
B)an increase in the price of iced coffee, a substitute product
C)an increase in the income of consumers (assume that iced tea is a normal good)
D)a decrease in the price of iced tea

Question

Which of the following will not increase the demand for iced tea?
A)​an increase in advertising that makes drinking iced tea more appealing
B)​an increase in the price of iced coffee, a substitute product
C)​an increase in the income of consumers (assume that iced tea is a normal good)
D)​a decrease in the price of iced tea

Quizplus · Accepted Answer

A decrease in the price of iced tea affects the quantity demanded rather than the demand itself. Changes in demand are represented by shifts of the demand curve, while changes in the quantity demanded are represented by movements along the same demand curve.

Which of the Following Will Not Increase the Demand for Iced