The demand curve for a normal good will shift to the right if:
A)income increases.
B)population increases.
C)the price of a substitute good increases.
D)all the above.
E)none of the above.

Question

Quizplus · Accepted Answer

The demand for a normal good is positively related to consumer income, so an increase in income will increase the demand for the good, shifting the demand curve to the right. An increase in population will also increase demand for the good, as there are more potential consumers, so the demand curve will shift to the right. If the price of a substitute good increases, consumers will be more likely to choose the normal good instead, increasing its demand and shifting its curve to the right. Therefore, all of the given options could cause a shift to the right in the demand curve for a normal good.

The Demand Curve for a Normal Good Will Shift to the Right