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

Question

Quizplus · Accepted Answer

If the price of a substitute good decreases, consumers will be more likely to purchase the substitute good, causing the demand for the normal good to decrease and the demand curve to shift to the left. Increases in income and population typically result in increased demand for normal goods, causing the demand curve to shift to the right. Therefore, choices A and B are incorrect.

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