Question

State one reason for a rightward shift in demand curve.

Hint:

Remember: A change in the price of the good causes movement \textit{along} the curve, but a change in other factors causes a \textit{shift} of the curve.

Answer 1

Step 1: Understanding the Concept:
A shift in the demand curve occurs due to factors other than the price of the good itself. A rightward shift indicates an increase in demand (more quantity demanded at every price).
Step 2: Identifying Factors:
Factors include changes in consumer income, tastes and preferences, prices of related goods (substitutes/complements), or future expectations.
Step 3: Choosing a Specific Reason:
An increase in the income of the consumer (in the case of normal goods) is a primary reason. When people have more money, they are willing and able to buy more of a product even if its price stays the same.
Step 4: Final Answer:
One reason for a rightward shift in the demand curve is an increase in the income of consumers (for normal goods).