A rightward shift in the demand curve for a product will ordinarily result from
A)a decrease in the advertising budget.
B)a decrease in the price of a competing product.
C)an increase in consumer income.
D)an increase in the price of a complementary good.

Question

Quizplus · Accepted Answer

An increase in consumer income will lead to an increase in demand for most normal goods, causing the demand curve to shift to the right. A decrease in the advertising budget (A) or an increase in the price of a complementary good (D) would lead to a decrease in demand, shifting the curve to the left. A decrease in the price of a competing product (B) could potentially shift the demand curve for the original product to the left or right, depending on how closely related the two products are and the preferences of the consumers.

A Rightward Shift in the Demand Curve for a Product