A change in a non-price factor of demand will cause:
A) a movement along the demand curve.
B) a shift of the demand curve.
C) the demand curve to rotate inward.
D) the demand curve to rotate outward.

Question

Quizplus · Accepted Answer

A change in a non-price factor such as income, consumer tastes, advertising, or the price of a substitute or complementary good will cause a shift in the demand curve, as opposed to a movement along the demand curve caused by a change in price. The direction of the shift will depend on whether the non-price factor has increased or decreased demand. The demand curve will not rotate inward or outward as these terms are not relevant to the concept of demand shift.

A Change in a Non-Price Factor of Demand Will Cause