When Might a Demand Curve for a Normal Good Shift

question 3

Multiple Choice

When might a demand curve for a normal good shift outwards?

• A) When the price of the product falls.
• B) When income falls.
• C) When the price of a complement falls.
• D) When supply increases.

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Definitions:

Guarantor

A person or entity that agrees to be responsible for another's debt or performance under a contract if the original party fails to meet their obligations.

Jointly

Involves two or more parties working together or sharing a specified obligation or liability.

Severally Liable

When individuals or entities are individually responsible for their own proportion of liability in a debt or claim, instead of being collectively responsible.

Principal Relationship

A legal relationship between two parties in which one, the agent, is authorized to act on behalf of the other, the principal, in business transactions.