Which of the following could lead to a shift in the demand curve? A) Changes in consumer income B) Improvements in production efficiency C) Increase in the price of inputs D) Natur... Which of the following could lead to a shift in the demand curve? A) Changes in consumer income B) Improvements in production efficiency C) Increase in the price of inputs D) Natural disasters affecting production
Understand the Problem
The question is asking about factors that can cause a shift in the demand curve, specifically which of the options provided could contribute to such a change.
Answer
Changes in consumer income
Changes in consumer income
Answer for screen readers
Changes in consumer income
More Information
Changes in consumer income can shift the demand curve because they affect the purchasing power, thus influencing the quantities demanded at each price level. When income increases, demand typically increases for normal goods, resulting in a rightward shift of the demand curve.
Tips
A common mistake is confusing factors that affect supply with those that affect demand. Changes like production efficiency and input prices impact supply rather than demand.
Sources
- Shifts in Demand and Supply for Goods and Services - courses.lumenlearning.com
- 3.2 Shifts in Demand and Supply for Goods and Services - pressbooks.oer.hawaii.edu
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