Managerial Economicsintermediate
Which of the following factors directly shifts the demand curve for a normal good rather than its supply curve? (Select all that apply.)
Answer
An increase in consumer income
Explanation
### Why this is right
- **Consumer income** can change how much consumers can afford, especially for normal goods.
- **Tastes, fashion, and preferences** affect consumers' willingness to buy.
- **The price of a substitute** can redirect demand toward or away from the good.
- **Season and climate** can affect demand for particular commodities.
### The concept
Demand depends on more than a product's own price. The note represents demand as a function of own price, substitute prices, income, and tastes, and also discusses seasonal influences. A change in own price usually produces movement along a demand curve; a change in another determinant changes the curve's position.
### The other options
- **The firm's production technology**: the note treats technology as a factor influencing supply, not as a direct demand determinant.
### Terms
- **Normal good**: a good whose demand rises when consumer income rises, other things equal.
### Remember
Own price moves you along demand; other demand determinants shift it.
Related Questions
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