Which of the following lists only factors that would cause a decrease in the demand for a good?
A)A decrease in popularity of a good; a rise in income (if the good is an inferior good); a fall in the price of a substitute good.
B)A decrease in the number of consumers in the market; a rise in the price of a substitute good; a fall in the price of a complementary good.
C)An increase in congestion effects; a decrease in the number of consumers in the market; increase in popularity of a product.
D)An increase in network effects; a rise in income (if the good is a normal good); a rise in the price of a substitute good.

Question

Quizplus · Accepted Answer

Factors that would cause a decrease in the demand for a good include a decrease in its popularity, a rise in income if the good is an inferior good (since people buy less of inferior goods as their income increases), and a fall in the price of a substitute good (making the substitute more attractive relative to the good in question).

Which of the Following Lists Only Factors That Would Cause