Which of the Following Will Cause the Demand Curve for a Normal

question 41

Multiple Choice

Which of the following will cause the demand curve for a normal good to shift to the right?  

• A) a decrease in income 
• B) an increase in the price of a complementary good 
• C) a decrease in the price of the good 
• D) an increase in the price of a substitute good

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Definitions:

Recessions

Temporary economic slumps marked by diminished business and manufacturing activities, conventionally defined by a sequential fall in GDP during two quarters.

Economy

The economy encompasses all activity related to production, consumption, and trade of goods and services in an area, involving various sectors such as agriculture, manufacturing, and services.

Keynesian

Relating to the economic theories of John Maynard Keynes, focusing on how aggregate demand influences economic output and inflation.

Classical Economic Systems

An economic framework based on free markets, limited government intervention, and the belief in the efficiency of market outcomes as guided by invisible hand principles.