The demand for Good $X$ is given in the graph shown here.
Which of the following could cause the shift of demand shown here?
The demand for Good $X$

Choose 1 answer:
(A) An increase in income if good $X$ is an inferior good
(B) Buyers of good $X$ expect the price of good $X$ to decrease in the future
(c) An increase in the price of good $Y$, which is a complement to good $X$

D People do not like good $X$ as much as they did before
(E) An increase in the number of buyers of a good

Question

The demand for Good $X$ is given in the graph shown here.
Which of the following could cause the shift of demand shown here?
The demand for Good $X$

Choose 1 answer:
(A) An increase in income if good $X$ is an inferior good
(B) Buyers of good $X$ expect the price of good $X$ to decrease in the future
(c) An increase in the price of good $Y$, which is a complement to good $X$

D People do not like good $X$ as much as they did before
(E) An increase in the number of buyers of a good

Accepted Answer

∻Solution∻ ‖ a ⋮ Demand Shift: The graph shows a rightward shift from $D1$ to $D2$, indicating an increase in demand for Good $X$. ‖‖ b ⋮ Potential Causes: The shift could be caused by several factors. Let's analyze the options: ‖ - **Option (A)**: An increase in income if Good $X$ is an inferior good would decrease demand, not increase it. This is incorrect. - **Option (B)**: If buyers expect the price to decrease in the future, they would delay purchases, decreasing current demand. This is incorrect. - **Option (C)**: An increase in the price of Good $Y$, a complement to Good $X$, would decrease the demand for Good $X$. This is incorrect. - **Option (D)**: If people do not like Good $X$ as much as before, demand would decrease. This is incorrect. - **Option (E)**: An increase in the number of buyers would increase demand, shifting the demand curve to the right. This is correct. ∻Answer∻ ⚹ (E) An increase in the number of buyers of a good ⚹ ∻Key Concept∻ ⚹ Increase in the number of buyers ⚹ ∻Explanation∻ ⚹ An increase in the number of buyers leads to a higher demand for the good, shifting the demand curve to the right.◊How would a decrease in the price of a substitute good affect the demand curve for Good X in this model?⍭ Generate me a similar question◊⚹

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