Which of the following would cause a shift in the demand curve from point A to point B? OA. An increase in the price of a substitute good. B. A decrease in income (inferior good). C. An increase in income (normal good). D. All of the above.

Which of the following would cause a shift in the demand curve from point A to point B? OA. An increase in the price of a substitute good. B. A decrease in income (inferior good). C. An increase in income (normal good). D. All of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Select one:

A: Except for price, the law of demand assumes that all demand factors remain unchanged. It confirms…

Q: Considering peanut butter and jelly as compliment goods, if demand of peanut butter decreases…

A: A good that is being used to add value to another good or could not be used without each other is…

Q: Explanation with an example Variables that can shift the demand curve –Income –Normal good…

A: Demand curve shows the graphical relationship between the demand and the price. Demand curve be…

Q: Which of the following is consistent with the law of demand? People substitute higher-priced goods…

A: Which of the following is consistent with the law of demand:

Q: Find an article in The Wall Street Journal or The Economist that was published after 12/1/23…

A: Market equilibrium occurs in a market when the quantity of a good or service demanded by buyers…

Q: In which case does the demand curve not shift? a. When there is a change in the price of a…

A: In a market, demand curve show two types of effects such that change in quantity demanded and change…

Q: All else equal, which is steeper, the demand curve for a normal good or the demand curve for an…

A: In the case of a normal good, as income increases, the demand for the good also increases, but at a…

Q: What are the influences on buying plans that change demand, and do these influences increase or…

A: The elasticity of demand is the reaction of demand due to change in price of goods and services,…

Q: demanded?

A: Demand(D) is the quantity(Q) of a commodity that an individual is willing and able to buy at a given…

Q: If we have two substitute goods, then a decrease in the price of one will lead to increase in the…

A: In a market, two goods can be related to each other in terms of their demand, such that a change in…

Q: Graphically explain the effects of decrease in income to the demand for good X assuming that good X…

A: There are two types of goods, normal and inferior.

Q: Question 2 Explain why the demand curve’s slope gets flatter as more (identical) consumers are…

A: As In a market there are many buyers. Hence for a given market price, they have their individual…

Q: what happens to the demand for a normal good when the price rise. Also explain this if we have the…

A: What happens to the demand for a normal good when the price rise? There is inverse relation between…

Q: When Jody’s income income increases by 10 percent and other things remain the same, Jody decreases…

A: Elasticity is a concept that's utilised to predict how demand or supply will fluctuate as a result…

Q: How can you test whether a good is normal, inferior, or neutral? b) How can you test whether two…

A: Good is considered "economic good" when it is useful to the people and yet scarce compared to the…

Q: Which will not cause a change in the demand for good X? A) a change in tastes B) a change in income…

A: Answer - Need to find- Which will not cause a change in the demand for good X Evaluating the…

Q: If milk is a normal good, then a decrease in consumers’ income will definitely cause A a decrease…

A: A normal good is the one whose demand increases with the increase in income and demand falls with…

Q: When consumers' incomes increased 10 percent, the quantity of milk bought increased 5 percent. This…

A: This concept quantifies the amount that a consumer will desire to purchase in response to changes in…

Q: Exhibit 3-6 02 Quantity of Good X efer to Exhibit 3-6. If a decrease in income causes the demand for…

A: A substitute good is good whose demand increases when the price of another good increases. A…

Q: Refer to the graph below: D, Price D. D, D. X, Pounds per month The demand curve and supply curve…

A: In the given graph, a shift from DD curve to D1D1 curve explains the rightward shift and it happens…

Q: The supplier of a good decreases the price of a good but notices that the total revenue from the…

A: The ceteris paribus presumption: Supply bends relate costs and amounts provided accepting no…

Q: Which of the following will NOT cause a shift in the demand curve? a) a decrease in the price b)…

A: The demand curve D is the downward sloping graphical representing the association between price and…

Q: Identify the type of goods which have zero cross elasticity of demand. a. Normal goods b.…

A: The elasticity of demand measures the responsiveness of quantity demanded of a good to a change in…

Q: How will the elasticity of demand be affected in the following cases? C. The budget share increases…

A: The concept of elasticity relates the responsiveness of demand change due to price change.

Q: Which of the following statement is correct? Explain A. The greater the number of substitutes, the…

A: The elasticity of a good is more if there are more substitutes because the elasticity measures…

Q: Price D2 Do Pairs of Indine Roller Skates This diagram shows the market for in-line roller skates.…

A: In the production process, the conditions and fluctuations that happen between demand and also the…

Q: Which of the following is NOT a characteristic of Giffen goods? a. The goods have no close…

A: A Giffen good is a special type of good because it does not follow the law of demand condition when…

Q: If the quantity demanded of good X decreases, then: *

A: A consumer's desire to buy products and services, as well as their willingness to pay a price for…

Q: f Cody's demand for grapefruit rises when the price of oranges rises, then for Cody a. Oranges are a…

A: When the cody demand for grapefruit rises with the rise in price of orange represents that the two…

Q: If the price of product A falls by 15 percent and the quantity demanded for product B falls by 30…

A: As per answering guidelines, answering the first question.

Q: Maria graduates from college and her income increases by $45,000. Nothing else changes. Maria…

A: Given that Maria's income increases by $45,000 and nothing else changes. Maria consumes three goods,…

Q: A and B are complementary goods. O A is a normal good and B is an inferior good. O A is an inferior…

A: Cross-price elasticity of demand = % change in the quantity demand/ % change in the price

Q: The law of demand states that, ceteris paribus, there is an inverse relationship between the price…

A: The demand curve shows the association between the amounts of commodity demanded by the consumer at…

Q: Barron used to make $2,500 a month and eat sushi three times per month. Now he is making $3,500 a…

A: We know that, Income elasticity would be ratio of percentage change in quantity demanded to…

Q: Consider the market for mobile phones. If consumers' incomes are increasing, then the price of…

A: Answer: Correct answer: Increase Explanation: As the income of consumers increases then the demand…

Q: Show in a diagram the effect on the demand curve, the supply curve, the equilibrium price, and the…

A: When the demand increases the demand curve shifts towards right and when demand decreases, the…

Q: Suppose that an increase in the price of X goods, leads to a decrease in the demand of good Y This…

A: Suppose there are two goods X and Y, increase in the price of X leads to a decrease in demand for…

Q: Imagine your income increases and you find that you buy more coffee. What is true about your income…

A: Income elasticity of demand is used to check the relationship between a change in quantity demanded…

Q: Explain the general determinants in one paragraph. GENERAL DETERMINANTS OF DEMAND • Good’s own…

A: The price of a commodity and its demand are inversely related which means if the price rises then…

Question

Which of the following would cause a shift in the demand curve from point A to point B?
OA. An increase in the price of a substitute good.
B. A decrease in income (inferior good).
C. An increase in income (normal good).
D. All of the above.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define shift in demand

VIEW

Step 2: Choose the correct option

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Peanut butter and jam can be either substitutes or it can be compliments. Caitlin likes peanut butter and she likes jam, but you do not know if Caitlin regards these products as substitutes or as compliments. Which of the following is true? A. If the price of peanut butter decreases and the quantity of jam Caitlin demanded increases, then Caitlin regards it as substitutes. B. If the price of jam increases and the quantity of peanut butter Caitlin demanded increases, then Caitlin regards it as compliments. C. If the price of peanut butter increases and the quantity of jam Caitlin demanded increases, then Caitlin regards it as substitutes. D. If the price of jam decreases and the quantity of peanut butter Caitlin demanded decreases, then Caitlin regards it as compliments. E. If the price of peanut butter increases and the quantity of jam Caitlin demanded stays the same, Caitlin regards it as compliments.
Sometimes the demand may be abnormal, meaning that the law of demand does not apply to the relationship between the quantity demanded and the price of the commodity, which makes the demand curve have a negative slope, discuss it?
Sita buys only two items form the market—bread and jeans. Her income and the price of bread is constant. As jeans become costlier she buys less bread. Which of the following does this imply. Why? price elasticity of demand for jeans is less than 1 (one) Jeans are a luxury Bread is an inferior good There is no substitution effect in this case
Q.2 Which two pairs of goods likely have a relatively weak negative cross price elasticity for most people? Select one: a. Peanut butter and computers. b. Sprite and Coca Cola. c. Sausages and ketchup. d. Beef and fish. e. chocolate milk and skim milk.
35. If an increase in income causes the quantity demanded of a good to fall, then the goodis:(a) A normal good(b) An inferior good(c) A substitute good(d) A complement good
A B D, The demand for a blueberries, a normal good, is shown in the graph above. A shift from B to A might be caused by: Multiple Choice a decrease in the price of blueberries. an increase in the price of blueberries. a decrease in the price of a substitute. an increase in the price of a substitute. Peter recently has accepted a 10 percent cut in pay as part of cutbacks at his workplace. Now he makes his coffee at home instead of stopping at the local coffee shop every day. Based on this behavior, what can we assume about these goods for Peter? Multiple Choice Home-brewed coffee is a normal good and coffee shop coffee is an inferior good. Home-brewed coffee and coffee shop coffee are normal goods. Home-brewed coffee will become a normal good over time Home-brewed coffee is an inferior good and coffee shop coffee is a normal good.
If the price of one good decreasing causes the price of another good to increase, then: a. demand is inelastic. b. the two goods are complements. c. the cross-price elasticity is positive. d. the second good is definitely inferior.
Explain, with the aid of a graph, the effect of an increase in income on the equilibrium price and quantity of wine if wine is an inferior good.
Which of the following combinations best describes the effects.of a consumer income increase on the market demand for a f1ormal and aninferior good? Demand increases for the normal good, and denand decreases for the nfenor good. b. Demand increases for the normal good, and demand does not change for the inferior good. c. Demand decreases for the normal good, and demand decreases for the inferior good.
A change in which of the following will shift the demand curve for hamburgers? Select one: a. A fall in the price of french fries, a complement for hamburgers. b. An increase in the price of a hamburger. c. An increase in the number of hamburger restaurants. d. An.increase in the price of the meat used to produce hamburgers.
Which of the following is true concerning the income effect of a decrease in price? A. It will lead to an increase in consumption only for an inferior good. В. It will lead to an increase in consumption only for a Giffen good. C. It always will lead to an increase in consumption. It will lead to an increase in consumption only for a normal good. B. D.
Two goods are substitutes if a decrease in the price of one good. This will lead to: Select one: a. reduces the quantity demanded of the other good b. increases the demand for the other good. c. increases the quantity demanded of the other good d. reduces the demand for the other good