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CIMA BA1 · Chapter 5 · Question 2 of 10

Which of the following would shift the demand curve for a normal good to the right?

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Reveal answer & explanation

Correct answer: B) A rise in consumers' disposable incomes

Explanation

For a normal good, higher incomes increase demand at every price, shifting the curve right. A fall in its own price is a movement along the curve. Dearer complements and cheaper substitutes both reduce demand, shifting the curve left.

All 10 questions in Chapter 5Demand, supply and price determination MCQs with answers

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