The product is a normal product.

-Refer to the graph above to answer this question.All of the following except one could have caused the shift from D1 to D2.Which is the exception?
A)An increase in income.
B)An increase in the price of a substitute good.
C)An increase in the price of a complement good.
D)Growth in the size of the market.

Question

The product is a normal product.
 
-Refer to the graph above to answer this question.All of the following except one could have caused the shift from D1 to D2.Which is the exception?
A)An increase in income. 
B)An increase in the price of a substitute good. 
C)An increase in the price of a complement good. 
D)Growth in the size of the market.

Quizplus · Accepted Answer

The shift from D1 to D2 represents a decrease in demand, which could occur for various reasons. An increase in income (choice A) could lead to an increase in demand for a normal good, so it wouldn't cause the shift. An increase in the price of a substitute good (choice B) could lead some consumers to switch to the original product, leading to an increase in demand rather than a decrease, so it also wouldn't cause the shift. Growth in the size of the market (choice D) could lead to an increase in demand, again causing the opposite effect of what is shown in the graph, so it's not the exception. On the other hand, an increase in the price of a complement good (choice C) could lead to a decrease in demand for the original product, as consumers may not want to pay more for both goods. Therefore, choice C is the exception, as it would actually cause a shift from D2 to D1, rather than the other way around.

The Product Is a Normal Product