Which of the following causes the market demand curve for a good to shift?
A) The cost of factors of production.
B) The number of buyers in the market.
C) The innovation in production process.
D) A producer's income.

Question

Quizplus · Accepted Answer

The number of buyers in the market determines the quantity demanded at each price level, and hence, influences the market demand curve. An increase in the number of buyers will shift the demand curve to the right, while a decrease in the number of buyers will shift it to the left. 
Factors such as the cost of factors of production, innovation in production process, and a producer's income may affect the individual demand for a good, but not necessarily the market demand, unless they impact the number of buyers in the market.

Which of the Following Causes the Market Demand Curve for a Good