An increase in demand could be caused by: a) an increase in the price of substitute goods b) a...
Question:
An increase in demand could be caused by:
a) an increase in the price of substitute goods
b) a decrease in the price of complementary goods
c) an increase in consumer income levels
d) all of the above
e) none of the above
Change in Demand:
Demand changes when non-price determinants of demand, including the consumer's income and tastes and the price of the related goods (i.e., substitutes and complements), change.
Answer and Explanation: 1
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View this answerAn increase in the price of substitute goods increases the demand for the good because it becomes relatively cheaper. So, (a) is true.
A decrease in...
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Demand in Economics | Definition & Examples
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Chapter 7 / Lesson 11 163K
Learn about the demand curve and how the law of demand works with examples. See the demand definition, diagrams, and explanations.
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