Which of the Following Is Likely to Shift the Current

question 158

Multiple Choice

Which of the following is likely to shift the current demand curve for a normal good to the right?

• A) a decrease in income if the good is a normal good
• B) an increase in the price of a complementary good
• C) a decrease in the good's price if the good is a normal good
• D) an expectation of a surplus in the future
• E) an expectation of a shortage in the future

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Definitions:

External Cost

Costs of a transaction that affect people other than the buyer or seller, typically not reflected in the market price.

Air Pollution

The presence of harmful substances in the air, often resulting from human activities, leading to environmental and health issues.

Tennessee

A U.S. state located in the southeastern region, known for its music heritage, particularly in cities like Memphis and Nashville.

Government Intervention

The actions taken by a government to influence or regulate various activities within its economy.