unit 2 (2.2) - shifts in demand and supply question when considering factors that shift demand curves, which…

unit 2 (2.2) - shifts in demand and supply question when considering factors that shift demand curves, which of the following will increase demand? select the correct answer below: a decrease in income (for a normal good) a drop in the population likely to buy the good in question encouraged buying based on future expectations a drop in the price of substitutes

unit 2 (2.2) - shifts in demand and supply question when considering factors that shift demand curves, which of the following will increase demand? select the correct answer below: a decrease in income (for a normal good) a drop in the population likely to buy the good in question encouraged buying based on future expectations a drop in the price of substitutes

Answer

Brief Explanations:

  1. For a normal good, a decrease in income reduces purchasing - power and thus demand.
  2. A drop in the population likely to buy the good reduces the number of potential buyers, decreasing demand.
  3. If consumers expect favorable future conditions (e.g., price increase in future), encouraged buying based on future expectations will increase current demand.
  4. A drop in the price of substitutes makes the substitute more attractive, decreasing demand for the original good.

Answer:

C. encouraged buying based on future expectations