Question

Q. Which of the following is/are responsible for a rightward shift in the demand curve:

Select the correct answer using the codes given below:

• A. 1 only
• B. 2 only
• C. 1, 2, and 4 only
• D. 2, 3, and 4 only

Answer 1

The correct option is D 2, 3, and 4 only

Explanation:

• A rise in consumer’s income leads to an increase in the demand for the commodity hence, the demand curve will shift rightward.
• Suppose there are two commodities, A and B, the price of B rises which is the substitute of commodity A. In that case, the demand for A will increase as people will shift their consumption from Commodity B to commodity A.
• A decrease in the price of complementary goods leads to an increase in the demand for the other complementary goods.