ACCA BT · Chapter 3 · Question 4 of 11
Which of the following would cause a shift of the demand curve for a normal good to the right, rather than a movement along it?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) An increase in consumers' disposable income
Explanation
A change in the good's own price causes a movement along the demand curve, not a shift. A rise in income increases demand for a normal good at every price, shifting the curve to the right. Higher raw material costs affect supply, shifting the supply curve, not demand.
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