A Rightward Shift in the Demand Curve for a Commodity

question 43

Multiple Choice

A rightward shift in the demand curve for a commodity necessarily means that

• A) consumers' incomes have fallen.
• B) supply conditions are more favorable.
• C) equilibrium price decreases.
• D) consumers are willing to buy more of the good at each price than previously.
• E) the price of complementary goods increased.

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Definitions:

Law Of Small Numbers

A bias in which people infer patterns or make generalizations from a small sample size, which may lead to misleading conclusions.

Gambler's Fallacy

The mistaken belief that if something happens more frequently than normal during some period, it will happen less frequently in the future, or vice versa.

Availability Heuristic

A cognitive shortcut that depends on the first examples that appear in someone's mind when considering a particular subject, idea, technique, or choice.

Conjunction Fallacy

The cognitive bias where people incorrectly believe specific conditions are more probable than a single general one.