Question

Which of the following will not decrease demand curves?

Select the correct answer below:


Discouraged buying based on future expectations.


A drop in the price of substitutes.


A rise in the price of complements.


A rise in income (for a normal good).

Answer 1

a ride in income for a normal good

Answer 2

The correct answer is A. rise in income (for a normal good).

Step-by-step explanation:

When the income increases and if the goods we are concerned about are normal goods, then the demand curve will shift towards right and increase. For inferior goods, the demand will decrease.

If the price elasticity of the change is more than 1, then it means that that the good is a luxury good.